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.

591.

In departmental accounting, which is not a transfer pricing_________

A.

Cost based transfer price

B.

Market based transfer pricing

C.

Dual pricing system

D.

Peak pricing

Correct answer is D

No explanation has been provided for this answer.

592.

When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________

A.

Price above or below the stipulated price

B.

Any price but not below the transfer price

C.

Cost price

D.

A price that is equal to the mark up

Correct answer is A

Cost plus mark up is a pricing strategy in which the selling price is determined by adding a specific amount mark up to a product unit cost

 

593.

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a

A.

Bonus

B.

Goodwill

C.

Premium

D.

Commission

Correct answer is B

Goodwill is the excess of the purchase consideration over the total value of an entity

 

594.

Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________

A.

Partners salaries

B.

Interest on capital

C.

Interest on loans

D.

Partners drawings

Correct answer is C

Is charged in the profit and loss account as finance expenses

595.

In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________

A.

Debit entry

B.

Contra entry

C.

Credit entry

D.

Reversal entry

Correct answer is A

A contra entry is an entry which is recorded to reverse or offset an entry on the other side of an account

  When cash is remitted from the branch

  Dr Bank account

  Cr Branch account

  Or

  Dr Remittance from bank

  Cr Remittance from branch