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.

2,421.

If an organization maintains a periodic stock system, the stock quantities are?

A.

Updated at the end of the accounting year

B.

Not considered in the updating process

C.

Updated continuously

D.

Updated at the beginning of the accounting year

Correct answer is A

In accounting, a financial period is calculated on a yearly basis. Accounts are prepared at the end of the year.

2,422.

Sundry debtor..................N20,000
Provision for bad debts........N500

Provision for bad debt at 4% of sundry debtors.
 

Calculate the provision to be taken to the balance sheet?

A.

N780

B.

N800

C.

N1200

D.

N200

Correct answer is B

The business owner made a provision of 500 as bad debt. Total debt owed was 20,000. At the end of the period, bad debts was 4%. Hence we have; 

4% x 20000
0.04 x 20000 = 800

2,423.

Sundry debtor..................N20,000
Provision for bad debts........N500

Provision for bad debt at 4% of sundry debtors.

Determine the provision for bad debts to profit and loss account?

A.

N500

B.

N820

C.

N1300

D.

N300

Correct answer is D

The business owner made a provision of 500 as bad debt. Total debt owed was 20,000. At the end of the period, bad debts was 4%. Hence we have; 

4% x 20000
0.04 x 20000 = 800

we subtract the total bad debt from the amount that was initially provided for bad debt and charge it to the profit and loss account as a expense

Provision for bad debts = 500
800 - 500 = 300

2,424.

Benefit enjoyed for which payments have not been made are?

A.

Accruals

B.

Prepayments

C.

Acquisitions

D.

Provisions

Correct answer is A

No explanation has been provided for this answer.

2,425.

Sales....................................N10,900
Stock 1/1................................N1,000
Stock 31/12..............................N2,000
Purchases................................N4,000
Returns outwards.........................N800
Returns inwards..........................N600
Carriage outwards........................N300
Carriage inwards.........................N200

The cost of goods available for sale is?

A.

N4,600

B.

N5,000

C.

N6,400

D.

N4,400

Correct answer is D

sales                                                        10900
- Returns inwards                                      600
-carriage outwards                                    300   
                                                                10000 
opening stock           1000
purchase                  4000
- returns outwards      800         3200      
+ carriage inwards                     200
goods avail. for sale                  4400

less; closing stock     2000
carriage outwards      300        2300          2100
Gross profit                                                7900