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.
Which of the following has the ultimate control of a company?
Board of directors
Employees
Shareholders
Management
Correct answer is C
The ultimate controller, refers to the shareholder who has the ultimate control in the company and is not controlled by anyone. This ownership structure often results in a certain level of control between the ultimate controller and the listed company.
The main purpose of transaction file is
To record assets and liabilities
To update income and expenses
To make organization decision
To update master files
Correct answer is D
A transaction file is used to hold data during transaction processing. The file is later used to update the master file and audit daily, weekly or monthly transactions.
Factory overheads are also known as
direct manufacturing
direct expenses
indirect cost
direct labour
Correct answer is C
Factory overhead are costs necessary for production which are not directly traceable to a specific quantity of physical units e,g factory rent, depreciation, fuel, indirect wages etc.
Which of the following is not an advantage of control account?
difficulty in committing fraud
it can be used to detect missing figure C. helps to determine profit and loss
helps to determine profit and loss
helps in locating errors
Correct answer is A
The uses of control account are:
- location of errors
- prevention of fraud
- preparation of interim final account
- saves time
- easy detection of missing figures
The following was extracted from the books of MEGA COMPANY NIG. LTD
|
₦ |
|
|
Trade debtors |
350,000 |
|
Fixtures and fittings |
600,000 |
|
Cash at bank |
25,000 |
|
Cash in hand |
5,500 |
|
Trade creditors |
116,500 |
|
Bank overdraft |
7,500 |
|
Building |
950,000 |
|
Motor van |
35,000 |
The working capital of the company is
₦156,000
₦280,000
₦565,000
₦256,500
Correct answer is D
Working capital = Current Assets - Current Liabilites
= (350,000 + 25,000 + 5,500) - ( 116,500 + 7,500)
= 380,500 - 124, 000
= ₦256,500