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.

2,051.

If creditors at 1\1\10 were Le 3,000; creditors at 31/12/10 Le 5,500 and payments to creditors Le 29,000. The purchases figure for 2010 is

A.

Le 34,500

B.

Le 32,000

C.

Le 31,500

D.

Le 26,500

Correct answer is C

29000 - 3000 = 26000

26000 + 5500 = 31500

 

2,052.

Partners whose liabilities are restricted to their financial contribution to the partnership in the event of winding up are

A.

Ordinary partners

B.

Limited partners

C.

Dormant partners

D.

Sleeping partners

Correct answer is B

Limited partner is a partner in a company or venture whose liability towards its debts is legally limited to the extent of their investment.

 

2,053.

The portion of authorized capital that has been allotted to subscribers

A.

Called up capital

B.

Paid up capital

C.

Issued capital

D.

Nominal capital

Correct answer is C

The Issued Capital refers to the number of shares issued by the company to the shareholders. In other words, the shares allotted or subsequently held by the shareholders is called the issued capital.


 

2,054.

The term used to denote the capital of a not-for-profit making organization is

A.

Annuity fund

B.

Nominal capital

C.

Circulating capital

D.

Accumulated fund

Correct answer is D

An accumulated fund is the capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures and there is a budgetary surplus.

2,055.

The equivalent of income and expenditure account in a trading concern is

A.

Trading account

B.

Profit and loss account

C.

Appropriation account

D.

Balance sheet

Correct answer is B

The income and expenditure account is an account prepared by non-trading concerns to ascertain surplus or deficit of income over expenditures for a particular period. Its equivalent is the profit and loss account . 

An income statement or profit and loss account is one of the financial statements of a company and shows the company's revenues and expenses during a particular period.