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.
Error of commission
Error of reversal of entries
Error of principle
Compensating error
Correct answer is C
No explanation has been provided for this answer.
What is the cardinal rule of the double entry system?
Debit the increasing account and credit the decreasing account
Debit the receiving account and credit the giving account
Debit the asset account and credit the liability account
Debit the revenue account and credit the expenditure account
Correct answer is B
No explanation has been provided for this answer.
When a business incurs labour cost in installing a fixed asset, the cost is treated as
Additional cost to the asset
Business wages and salaries
Installation cost of the asset
Business cost of the asset
Correct answer is A
No explanation has been provided for this answer.
Debit generator account and credit cash account
Debit purchases account and credit cash account
Debit cash accounts and credit purchases account
Debit cash account and credit generator account
Correct answer is B
The question says 'an electronic shop bought generators'. Meaning it is for resale and not for office or personal use.
This means cash account will be credited because money has gone out of the business for the purchase of generators. Since the question didn't say the goods were paid for by cheque, we are crediting the cash column, if it was paid by cheque, the bank column would be credited instead.
On the other hand, the purchase account (stock) will be debited because goods have come into the company as a result of the purchase.
Always remember this simple accounting entry; debit all receivables (purchases account receiving), credit all payment (cash account paying out).
Accounting information is used by investors and creditors of a company to predict
Future cash flows of the company
Future tax payments of the company
Potential merger candidates for the company
Appropriate remunerations for the company's staff
Correct answer is A
No explanation has been provided for this answer.