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.
The distributable profit available to shareholders at the end of each year is the
Total profit and debtors balance
General reserve and retained profit
Retained profit and fictitious assets
Total profit less creditors balance
Correct answer is D
No explanation has been provided for this answer.
The issued share capital is the number of shares that are
Authorized by share holders
Shared among the directors
Fully subscribed
In the share certificate
Correct answer is C
Issued shares are the shares sold to and held by investors of a company. They consists of the shares that have been sold to the shareholders against cash or some other consideration.
#230,000
#280,000
#500,000
#550,000
Correct answer is A
46k x 500,000 = 23,000,000 k
23000000 / 100 = 230,000
Which of the following is the capital reserve of a company?
Share premium
Retained profit
Accumulated depreciation
Loss on forfeited shares
Correct answer is A
A capital reserve is an account in the equity section of the balance sheet that can be used for contingencies or to offset capital losses. It is derived from the accumulated capital surplus of a company, created out of capital profit.
Capital Reserve is a type of profit that is earned on capital transactions - an example would be the profit arising from the forfeiture of shares, share premium, Capital Redemption Reserve or Debenture Redemption Reserve.
The objective of departmental account is to
Ascertain the cost of running the organization
Ascertain the amount of profit or loss for each department
Ascertain the amount of profits for losses for the enterprises
Offset the loss of each treatment
Correct answer is B
To check out an interdepartmental performance.
To evaluate the performance of the department with the previous period result.
The gross profit of each department can ascertain.
Unprofitable departments will reveal.