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.

2,461.

Apart from the common control accounts, a control account can also be opened for?

A.

Sales account

B.

Purchases account

C.

Cash account

D.

Wages account

Correct answer is C

No explanation has been provided for this answer.

2,462.

Jan. 1 Received 1,000 units at N10 each
Jan. 2 Received 2,000 units at N12 each
Jan. 3 Issued 1,500 units
Jan. 4 Received 1,000 units at N11 each
Jan. 5 Issued 1,000 units

What is the value of closing stock using simple average?

A.

N11,500

B.

N17,000

C.

N16,500

D.

N28,500

Correct answer is C

In this method of stock valuation, the average unit cost is calculated by multiplying the total of the unit costs by the number of receiving. 

issue price method Date Receipt Issue Balance
Simple average   Qty price Value Dispatch Qty Balance
1/1 1000 10 10000 - 1000
2/1 2000 12 24000 - 3000
3/1 - - - 1500 1500
4/1 1000 11 11000 - 2500
  5/1 - - - 1000 1500
Total   4000 33   2500 1500

The closing stock using simple average =

(33 ÷ 3) x 1500 = 16500

 

2,463.

Jan. 1 Received 1,000 units at N10 each
Jan. 2 Received 2,000 units at N12 each
Jan. 3 Issued 1,500 units
Jan. 4 Received 1,000 units at N11 each
Jan. 5 Issued 1,000 units

Using FIFO method, what is the value of the closing stock?

A.

N34,000

B.

N29,000

C.

N17,000

D.

N12,000

Correct answer is C

FIFO means first in first out. This method assumes that the oldest products in a company’s inventory have been sold first. The costs paid for those oldest products are the ones used in the calculation.

issue price method Date Receipt     Issue   Balance    
FIFO   Qty price Value Qty price Value Qty value
1/1 1000 10 10000 - - - 1000 10000
2/1 2000 12 24000 - - - 3000 34000
3/1 - - - 1500 - 1500 1500 18000
4/1 1000 11 11000 - - 2500 2500 27,500
  5/1 - - - 1000   1500 1500 16500

From the table above, value of closing stock using FIFO = 

Total closing stock = 1500

previous stock bought at N12 = 500 units

Last stock bought at N11 = 1000 units

12 x 500 + (11 x 1000) = 17,000

 

2,464.

Which of the following items are current assets?

A.

Stock, bills receivable, cash and debtors

B.

Stock, bill payable, cash and debtors

C.

Stock, bad debt, bills receivable and cash

D.

Stock, work-in-progress, cash and bills payable

Correct answer is A

Current assets include cash and other assets that are expected to be converted to cash within a year. Option A ''Stock, bills receivable, cash and debtors'' is correct.

- Stock are goods bought for the purpose of resale
- Bills receivable are incurred as a result of credit sales
- Cash is the available money at hand
- A debtor is a person, company, or other entity that owes money.