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.
In company account, dividend payments are effected in which of the following accounts?
Realization
Current
Appropriation
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.
Income and Expenditure account is the same as the --------- of a sole trader
balance sheet
trading account
profit and loss account
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.
The purchases ledger control account is also known as
bill payable control account
credit purchase control account
creditors control account
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.
Which of these is not method of stock valuation?
FIFO method
Base method
Standard method
LIFO
Correct answer is C
The methods of stock valuation are: FIFO, LIFO, Weighted Average Price Method, Simple Average Price Method, Base stock method.