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.

541.

The advantage of double entry is that

A.

It is easy to prepare the final account

B.

It increase assets

C.

Has cash and bank column

D.

It disburses cash

Correct answer is A

Double-entry accounting is easy to prepare and helps guarantee accurate financial records by revealing data entry errors. Double-entry accounting provides a complete record of financial transactions for a business.

 

542.

A statement in a double-entry system in which are recorded all the transactions of one specific class, which takes place during the period is called

A.

Double entry system

B.

Ledger

C.

Cash Book

D.

Petty Cash Book

Correct answer is B

A ledger is a separate record within the general ledger that is assigned to a specific asset, liability, equity item, revenue type, or expense type. Examples of ledger accounts are: Cash, Accounts receivable.

543.

Show how the following transaction will be recorded applying the double-entry principle:
Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July 2017 by cheque.

 

A.

Dr Rent A/c; Dr Bank A/c

B.

Dr Bank A/c; Cr Rent A/c

C.

Dr Rent A/c; Cr Bank A/c

D.

Dr Rent A/c; Cr Mr. Roi

Correct answer is C

In the double-entry principle, we debit income and credit expenses.

The rent account will be debited with the sum of #50,000 in regards to the landlord (because money has been paid in as rent, e.i income), while the bank column will be credited with N50,000 (money has gone out of Mr. Rio bank account via the cheque that was issued to the landlord)

544.

Transactions are recorded or posted to the ledger in line with

A.

Accounting Concept

B.

Source document

C.

Double Entry Principle

D.

Data collection

Correct answer is C

The main principle of double-entry system is that for every debit there is a corresponding credit for an equal amount of money and for every credit there is a corresponding debit for an equal amount of money; i.e. for every transaction one account is debited for, the amount of transaction and the other account is also credited.