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.

476.

From the following, determine the value of the closing stock using:

Feb 1 purchased 200 units @ ₦2.00 each
Feb 3 purchased 100 units @ ₦1.00 each
Feb 4 issued 120 units @ ₦2.00 each
Feb 5 purchased 50 units @ ₦3.00 each
Feb 6 issued 80 units @ ₦2.00 each
Feb 6 issued 20 units @ ₦1.00 each

A.

330

B.

420

C.

230

D.

320

Correct answer is C

Feb1 : bought (200 × 2)  = 400
feb 3 : bought (100 × 1) =   100    500
Feb 4 : issued (120× 2) =            (240)
                                                     260

Feb 5: bought (50 x 3 =   150       410
Feb 5: issued (80 x 2) =               (160)  
''     ''     ''         (20x 1) =                 (20)
                                                       230

The value of the closing stock is ₦230

 

477.

In the preparation of account, the owners of the business and the business concerned are treated as

A.

Partners

B.

Joint venture

C.

The same person

D.

Separate legal entities

Correct answer is D

The business entity concept state that business is treated as a separate entity from parties having proprietary or economic interest in it.

478.

Capital at start was ₦250,000, while capital at the end of the year was ₦400,000. Drawings during the year amounted to ₦15,000. What is the profit?

A.

₦165,000

B.

₦635,000

C.

₦600,000

D.

₦156,000

Correct answer is A

P = 400,000 - 250,000 + 15,000
P = ₦165,000

NOTEDrawings are amounts or items given to the owner of a business for personal use. Till recovered, it is an asset. Drawings are not considered a business expense, therefore it is always added on the asset side of the balance sheet.

479.

One of the limitations of accounting is that

A.

It ascertain financial position

B.

It prevent fraud

C.

Transactions are recorded in monetary terms

D.

It monitor the progress of the enterprise

Correct answer is C

In accounting, all transactions are recorded in monetary terms. There is no other terms of recording transactions except monetary terms.

480.

Given:


Fixed assets
Liabilities
Current assets

55,000
20,000
13,000

What is the capital?

A.

₦88,000

B.

₦48,000

C.

₦62,000

D.

₦55,000

Correct answer is B

Capital = Total Assets - Total liabilities
⇒ 55,000 + 13,000 - 20,000
68,000 - 20,000
₦48,000