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.

1,971.

The realization concept states that

A.

Revenue is recognized as being earned when ownership of goods passes to the customer

B.

Revenue and profit should not be anticipated

C.

Similar way from one accounting period to another

D.

Transaction must be expressed in monetary term

Correct answer is D

The realization principle is the concept that revenue can only be recognized once the underlying goods or services associated with the revenue have been delivered or rendered, respectively. Thus, revenue can only be recognized after it has been earned. Advance payment for goods. 

1,972.

The accounting principle that states that insignificant expenditures are not to be taken into account is the

A.

Realization concept

B.

Materiality convention

C.

Marching concept

D.

Consistency convention

Correct answer is B

This accounting convention proposed that while accounting, only those transactions which have material impact on financial status of the organization will be considered and other transactions which have insignificant effect will be ignored. It gives relative importance to an item or event.