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 book value per share is obtained by dividing?
Shareholders equity by outstanding shares
Total assets by outstanding shares
Gross profit by outstanding shares
Net profit by outstanding shares
Correct answer is A
To calculate the book value per share, you must first calculate the book value, then divide by the number of common shares. Also, since you're working with common shares, you must subtract the preferred shareholder equity from the total equity. Hence we have;
Book Value per Share = (Shareholders' Equity - Preferred Equity) / Total Outstanding Common Shares.
Provision for bad and double debts in companies final accounts is treated in?
Trading account
Profit and loss account
Fund flow statement
Cash flow statement
Correct answer is B
The Provision for Bad and Doubtful Debts will appear in the Balance Sheet. Next year, the actual amount of bad debts will be debited not to the Profit and Loss Account but to the Provision for Bad and Doubtful Debts Account which will then stand reduced.
Credited with application and allotment N187,500
Debited with appllication and allotment N375,000
Credited with application and allotment N375,000
Debited with application and allotment N187, 500
Correct answer is C
Premium shares = Issue price per share – Face value/par value per share x No of shares.
Issue price = N1.50
Face value = N1
No. of shares = 750,000
1.50 - 1 = 0.50
0.50 x 750,000 = 375,000
Share Application or share allotment or Share capital A/c all are personal accounts as they represent money from the shareholders and when money is due, these are to be debited because of the rule "Debit the receiver".
In a partnership account, conversation of non-cash assets into cash is referred to as?
Realization
Disposal
Dissolution
Revaluation
Correct answer is A
Realization account refers to an account opened by the firm when it goes to dissolution to record the profit made from the sale of assets and loss suffered on the settlement of liabilities. When non-assets are converted to cash its called realization.
N11,950
N10,950
N20
N0
NO OPTION
Correct answer is E
K capital contributed = 10000
10000 - 1,000 - 2000 - 100 - 10 = 6880