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.
Use the information below to answer the following questions
| Period 1 | N |
| Cash to petty cashier | 1000 |
| Petty cashier pays out | 780 |
| Period 2 | |
| Petty cashier pays out | 840 |
What is the balance of cash with the petty cashier at the end of period 1?
220
780
980
1780
Correct answer is A
Period one income =
N1,000- N780 pay out = N220 balance
160
840
1000
1040
Correct answer is D
Previous imprest - pay out in period 2;
1,000 - 840 = 160
Then when it is increased to 1200;
1200 - 160 = 1040
The petty cashier will be reimbursed with 1,040
i, ii and v
i, ii and iv
i, ii and iii
iii, iv and v
Correct answer is C
Fixed assets are assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, furniture and equipment. From the question above they include; i, ii & iii.
i and ii
iv and v
iii and v
ii and iv
Correct answer is B
Current Liabilities = Notes payable + Accounts payable + Accrued expenses + Unearned revenue + Current portion of long term debt + other short term debt.
From the question above, Loans from friends and creditors are liabilities the rest are assets
Increase in assets and increase in capital
Increase in liabilities and decrease in capital
Decrease in capital and increase in assets
Decrease in capital and decrease in assets
Correct answer is C
Drawings is the withdrawals from a business by a business owner for his personal use. It represents a reduction of owners' equity (capital) in the business.
Drawings account have a debit balance which increases assets (remember in the balance sheet, assets are recorded on the debit side of the account while liabilities have a credit ballance). Hence drawings would reduce owners capital and increase the asset balance.