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.
When shares are issued above their nominal value, the excess above the nominal value is
Credited to profit and loss account
Debited to share premium account
Credited to share capital account
Credited to share premium account
Correct answer is B
A company issues its shares at a premium when the price at which it sells the shares is higher than their par value. The amount of the premium is the difference between the par value and the selling price and will be debited to the share premium account.
Constitency concept
Prudence concept
Accrual concept
Going corncern concept
Correct answer is C
Accrual concept is the most fundamental principle of accounting which requires recording revenues when they are earned and not when they are received in cash, and recording expenses when they are incurred and not when they are paid.
Surplus
Shortfall
Loss
Deficit
Correct answer is D
A deficit occurs for a nonprofit organization whenever its expenses exceed its revenue. (income is less than expenditure) . This is also true of businesses and government agencies. Deficits can be difficult for nonprofit organizations to overcome because they are heavily dependent upon the generosity of donors to stay afloat.
D33,000
D28,000
D23,000
D5,000
Correct answer is C
When an asset is sold, the entries for the accumulated depreciation are; debit
Assets disposal account; credit provision for depreciation account
Provision for depreciation account; credit asset disposal account
Fixed asset account; credit asset disposal account
Asset disposal account; credit fixed asset account
Correct answer is B
Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.