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.

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2,416.

........................31/12/08...........31/12/09

Furniture and fittings..N21,000,............N28,000
Office equipment........N9,800,.............N13,200
Debtors.................N6,800,.............N5,200
Creditors...............N4,900,.............N5,100
Cash at bank............N7,000,.............N4,600
Accrued electricity bills...................N1,200

Monthly drawings average N330.

Determine the net profit?

N5,000

N3,960

N1,040

N8,960

View answer & explanation

Correct answer is D

No explanation has been provided for this answer.

2,417.

N39,700

N35,900

N35,740

N43,660

View answer & explanation

Correct answer is A

Furniture & fittings + office equipt. + debtors + cash at bank - creditors
21000 + 9800 + 7000 + 6800 - 4900 = 39700

2,418.

Determine the total expenses to be charged to profit and loss account?

N2,350

N1,600

N800

N3,150

NO OPTION

View answer & explanation

Correct answer is E

No explanation has been provided for this answer.

2,419.

............................31/12/07.......31/12/08
Stocks........................N4,200.........N3,900
Rates in advance..............N1,000.........N1,500
Accrued wages.................N1,150.........N1,350

Cost of goods sold was valued at N6,000.
Cash paid for rates and wages during the year was N1,300 and N2,200 respectively.

What is the value of purchases for the year 2008?

N6,000

N9,900

N14,100

N5,700

View answer & explanation

Correct answer is D

opening stock = 4200
closing stock = 3900
cost of goods sold = 6000

purchase = opening stock - closing stock - cost of goods sold

4200 - 3900 = 300

6000 - 300 = 5700

2,420.

If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to?

Have a higher cost of goods sold

Have a higher gross profit

Pay higher gross profit

Have a higher value for closing stock

View answer & explanation

Correct answer is A

During periods of inflation (rise in prices), the use of LIFO will result in the highest estimate of cost of goods sold among the three approaches, and the lowest net income.