Accounting questions and answers

Accounting Questions and Answers

If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.

511.

Accounting standards are issued at the International level by the

A.

Standards Advisory Council

B.

International Accounting Standards Board

C.

Nigerian Accounting Standards Board

D.

Standing Interpretations Committee

Correct answer is B

Accounting standard is a statement issued by the appropriate standard - setting body locally or internationally on a specific area or topic in Financial Accounting.
Accounting standards are issued at the International level by the International Accounting Standards Board (IASB) - formerly International Accounting Standards Committee (IASC).

512.

The importance of bank statement is all except

A.

Verifies the accuracy of balances of cash book and cheque book

B.

Helps to detect and rectify any error

C.

Helps to debit an account

D.

Helps to update the cash book

Correct answer is C

Bank statement is prepared by the bank to an account border showing the transactions between the customer and the bank within a period of time. It is usually issued monthly or at agreed intervals to the customers.

 

513.

Given:


Additional capital
Capital
Closing capital
Net profit

4000
8000
12000
1500

The drawings for the period stand at

A.

1500

B.

3000

C.

12,000

D.

10,500

Correct answer is A

Using the formula:
OC + AC + NP - D = CC
where: OC = Opening Capital
AC = Additional Capital
NP = Net Profit
D = Drawings
CC = Closing Capital
Then;
8000 + 4000 + 1500 - D = 12,000
13,500 - D = 12,000
D = 13,500 - 12,000
D = ₦1500

514.

The two recognised accounting bases are

A.

Cash and credit

B.

Personal and impersonal

C.

Accrual and Cash

D.

Drawings and Private

Correct answer is C

Accounting bases are the totality of method adopted by an enterprises for applying fundamental accounting concepts to its Financial transactions. However, the two bases are cash and Accrual basis

 

515.

Every economic unit, regardless of its legal form of existence, is treated as a separate entity from parties having economic interest is

A.

Realisation concept

B.

Entity concept

C.

Going concern concept

D.

Matching concept

Correct answer is B

The entity concept ensures that only the expenses incurred by/for the business, incomes earned by the business, assets acquired for the business and liabilities owed by the business are respectively recorded as expenses, incomes, assets and liabilities in the books of the business.