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.

2,856.

Shares issued to a vendor in payment of business purchased would require a debit to

A.

Cash account and credit to share capital account

B.

Share capital account and credit to vendor's account

C.

Vendor's account and credit to share capital account

D.

Share capital account and credit to cash account

Correct answer is C

No explanation has been provided for this answer.

2,857.

Calls in advance are treated in the balance sheet as

A.

Current asset

B.

Current liability

C.

Fixed assets

D.

Fixed liability

Correct answer is B

No explanation has been provided for this answer.

2,858.

If a promoter pays a lawyer N5,000 for services rendered in preparing a Memorandum of Incorporation, the journal entry is to debit?

A.

Preliminary expenses, credit cash accounts

B.

Promoter, credit creditors' accounts

C.

Lawyer's credit cash accounts

D.

Cash, credit incorporation accounts

Correct answer is A

No explanation has been provided for this answer.

2,859.

Which of the following events increases a corporation's shareholders equity?

A.

Donation of shares out of the corporation's own stock to the corporation

B.

The corporation's purchase of treasury stock

C.

Shares of previously subscribed stock issue to subscribing stockholders

D.

A municipality donation of land to the corporation

Correct answer is A

No explanation has been provided for this answer.

2,860.

The market price per ordinary share of a corporation listed on the stock exchange is most closely related to its?

A.

Earning per share

B.

Redemption price per share

C.

Book value per share

D.

Call price per share

Correct answer is D

No explanation has been provided for this answer.