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.
| N | N |
| Capital 39,000 | Land 20,000 |
| Long Term Loan 15, 000 | Building 30,000 |
| Creditors 9,000 | Stock 40,000 |
| Debtors 6,000 | |
| Accrued wages 5,000 | Cash 8, 000 |
| 68,000 | 68,000 |
Use the information above to answer the question
: The acid test ratio in the company is___________
1:1
2:3
1:2
3:2
Correct answer is A
Acid test ratio measures the liquidity position of a company after deduction stock (inventory) from current assets
Formula: current assets less inventory/current liabilities
18000 - 4000/14000 = 1 : 1
The accounts of Jute Enterprise in the books of a supplier will be a
Nominal account in the general ledger
Personal account in the sales ledger
Personal account in the purchases ledger
Real account in the general ledger
Correct answer is B
No explanation has been provided for this answer.
Which of the following describes a trial balance?
It shows all the entries in the books
It reveals the financial position of a business
It is a list of accounting balances on the books
it is a special account
Correct answer is C
No explanation has been provided for this answer.
The effect on profit when the closing stock is understated is
Increase in profit
Decrease in profit
No change in profit
Appropriation of profit
Correct answer is B
No explanation has been provided for this answer.
The balance sheet equation shows
Current assets minus current liabilities
The difference between fixed assets and current liabilities
Assets and sources of financing them
Sources of funding owner's equity
Correct answer is C
No explanation has been provided for this answer.