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.

2,066.

Capital receipt is collected

A.

On sales of motor vehicle

B.

On sales of stock in trade

C.

From trade debtors

D.

From trading activities

Correct answer is A

Capital receipts are receipts that create liabilities or reduce financial assets. Option A is correct, because when a business sells its motor van, it leads to a reduction in assets

 

2,067.

The addition of prime cost and factory overhead is

A.

Total factory overheads

B.

Market value of goods produced

C.

Cost of goods produced

D.

Work-in-progress

Correct answer is C

The cost of goods manufactured equation is calculated by adding the total manufacturing costs; including all direct materials, direct labor (prime cost) and factory overhead; to the beginning work in process inventory and subtracting the ending goods in process inventory.

 

2,068.

Which of the following is a trading account item?

A.

Discount allowed

B.

Discount recieved

C.

Carriage outwards

D.

Carriage inwards

Correct answer is D

Carriage inwards is the shipping and handling costs incurred by a company that is receiving goods from suppliers. It is added to the cost of purchase and recorded in the trading account

2,069.

The process of entering transaction from one book to another is

A.

Reading

B.

Posting

C.

Numbering

D.

Listing

Correct answer is B

Posting in accounting is when the balances in sub-ledgers and the general journal are shifted into the general ledger. 

2,070.

A balance sheet shows only

A.

Fixed assets and current assets

B.

Assets and long term liabilities

C.

Assets and liabilities

D.

Assets and capital

Correct answer is C

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity.