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.
Which of the following is not found in a trial balance?
Opening stock
Closing stock
Capital
Rent paid
Correct answer is B
Closing stock is the leftover balance out of goods which were purchased during an accounting period. Total purchases are already included in the trial balance, Hence closing stock should not be included in the trial balance again. If it is included, the effect will be doubled.
Principal book of accounts
Book of original entry
Record of credit transactions
Summary of entries
Correct answer is A
A ledger is the principal book that contains a record of business transactions.
Which of the following is the reason why a seller allows a customer cash discount?
Agreement to become a regular customer
Introducing a new customer to the seller
Settlement of account within a stated period
Placing a larger order
Correct answer is C
Small cash discounts benefit the seller because they increase the likelihood that a buyer will pay quickly, therefore providing the seller with cash in a shorter period of time, as it is better to receive e.g. 95% of an invoice with a few days than wait 30 or more days to receive the full amount.
A trial balance is prepared to
Detect fraud
Ascertain losses in a trading period
Determine opening capital
Test arithmetical accuracy of ledger entries
Correct answer is D
Preparing a trial balance for a company serves to detect any mathematical errors that have occurred in the double-entry accounting system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers.
Which of the following is not an external user of accounting information?
Management
Creditors
Shareholders
Government
Correct answer is A
External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.
The management are internal users of accounting information.