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.

2,456.

Work-in-progress 1/1........................N1,000
Work-in-progress 31/12......................N2,000
Production cost of goods manufactured.......N20,000
Sales.......................................N50,000
Stock of finished goods 1/1.................N4,000
Stock of finished goods 31/12...............N5,000
Selling and distribution expenses...........N2,000
Administrative expenses.....................N1,000

What is the net profit?

A.

N46,000

B.

N45,000

C.

N28,000

D.

N27,000

Correct answer is C

Trading profit and Loss Account 

opening stock                   4,000
Add: cost of products       20,000      24,000
Less: closing stock                            5000
                                                         19,000

Gross profit                                      31,000
                                                         50,000
selling & dis. Exp               2000
Admin. Exp                       1,000         3000
Net profit                                           28,000

                                                         31,000             

Sales             50,000







G.profit b/d    31000


 

 

2,457.

Work-in-progress 1/1........................N1,000
Work-in-progress 31/12......................N2,000
Production cost of goods manufactured.......N20,000
Sales.......................................N50,000
Stock of finished goods 1/1.................N4,000
Stock of finished goods 31/12...............N5,000
Selling and distribution expenses...........N2,000
Administrative expenses.....................N1,000

Determine the gross profit?

A.

49,000

B.

48,000

C.

31,000

D.

30,000

Correct answer is C

    Trading profit and Loss Account 

opening stock                   4,000
Add: cost of products       20,000      24,000
Less: closing stock                            5000
                                                         19,000

Gross profit                                      31,000
                                                         50,000
selling & dis. Exp               2000
Admin. Exp                       1,000         3000
Net profit                                           28,000

                                                         31,000             

Sales             50,000







G.profit b/d    31000


 

 

 

2,458.

The cost incurred by departments that support the production departments with such activities as maintenance, production control and storage are called?

A.

Autonomous costs

B.

Service costs

C.

Supporting cost

D.

Subsidiary costs

Correct answer is B

Service costs are the costs incurred to provide or deliver a service. They have the element of manufacturing cost but are not directly involved in production. They include cost such as the use of power and water; fee for use of furniture carpeting/curtains, costs such as cleaning of common areas, costs of concierge or maintenance of common garden.

2,459.

Which of the following is an item in the debit side of the sales ledger control account?

A.

Interest charged by suppliers

B.

Bills receivable honored

C.

Transfer of credit balances from credit control account

D.

Transfer of debit balance from creditors control account

Correct answer is A

Recall sales ledger control account are used to track trade debtors, that is goods sold on credit. We already know that we debit all income and credit expenses. The debit side of the account contains interest charged by suppliers because the goods were sold on credit and its considered an income.

 

2,460.

Which of the following is a debit item in the purchases ledger control account?

A.

Balance b/d

B.

Cheque dishonoured

C.

Purchases

D.

Balance c/d

Correct answer is D

No explanation has been provided for this answer.