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.
A loss made on the disposal of a fixed assets is debited to
Sales account
Purchases account
Profit and loss account
Capital account
Correct answer is C
Loss on sale; Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset
Which of the following is not an item in the profit and loss account?
Drawings
Interest
Salaries
Bad debts
Correct answer is A
Drawings account is one of the temporary accounts and is closed at the end of accounting period. But this account is not closed in the income statement i.e. trading account or profit and loss account rather it is closed in the capital account of the owner which is reported in the statement of financial position
Which of the following is not a revenue to a local government?
Fines
Licenses
Personal income tax
Tenement rates
Correct answer is C
State and local governments collect tax revenues from three primary sources: income, sales, and property taxes. Income and sales taxes make up the majority of combined state tax revenue, while property taxes are the largest source of tax revenue for local governments, including school districts.
Administrative, selling and distribution expenses in a manufacturing firm are recorded in
Trading account
Manufacturing account
Profit and loss account
Balance sheet
Correct answer is C
A profit and loss (P&L) statement summarizes the revenues, costs, and expenses incurred during a specific period of time.
An underwriter for a company's share is paid
Interest
Commission
Dividend
Salary
Correct answer is B
Underwriting commission is the compensation that an underwriter receives for offering underwriting services. a fee is paid as a return for the implicit risk involved in the underwriting contract.