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.

76.

In company account, dividend payments are effected in which of the following accounts?

A.

Realization

B.

Current

C.

Appropriation

D.

Capital

Correct answer is C

In company accounting, dividend payments are effected in the appropriation account. The appropriation account is a part of the profit and loss account where the net profit is appropriated or distributed among various heads like dividends, general reserve, etc.

77.

Income and Expenditure account is the same as the --------- of a sole trader

A.

balance sheet

B.

trading account

C.

profit and loss account

D.

cash book

Correct answer is C

The income and expenditure account shows the summary of revenue and running cost of a non-profit making organization. It follows the same principles as the profit and loss account of a trading concern.

78.

The Accounting term used to describe a partnership firm that stops operation and disposes its assets is

A.

Amortization

B.

Revaluation

C.

Realization

D.

Dissolution

Correct answer is D

Dissolution of partnership is the process whereby a partnership is automatically dissolved or brought to an end by the happenings of any event which makes it unlawful to carry on the business.

79.

The purchases ledger control account is also known as

A.

bill payable control account

B.

credit purchase control account

C.

creditors control account

D.

total purchase

Correct answer is C

The purchases ledger control account is also known as the creditors control account. This account is used in a business's accounting to record the total amount owed to suppliers for purchases made on credit. It is a summary account that reflects the total amount payable to all suppliers.

80.

Which of these is not method of stock valuation?

A.

FIFO method

B.

Base method

C.

Standard method

D.

LIFO

Correct answer is C

The methods of stock valuation are: FIFO, LIFO, Weighted Average Price Method, Simple Average Price Method, Base stock method.