Financial Accounting Past Questions v1 (JAMB/WAEC/NECO)

Financial Accounting Past Questions v1 (JAMB/WAEC/NECO); These Financial Accounting questions are for students who are sitting for the following examinations:

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• JAMB
• Post-UTME / Post-JAMB
• WAEC
• NECO
• WAEC GCE
• NECO GCE
• NABTEB
• NABTEB GCE

Results

#1. The term "accounting period" is used to refer to the

A) time span during which taxes are paid to the inland revenue board

A) time span during which taxes are paid to the inland revenue board

B) budget period, usually one year, relied on by the accountant

B) budget period, usually one year, relied on by the accountant

C) time span, usually one year, covered by financial statement

C) time span, usually one year, covered by financial statement

D) period within which debtors are expected to settle accounts

D) period within which debtors are expected to settle accounts

#2. Assigning revenues to the accounting period in which goods were sold or services rendered and expenses incurred is known as

A) passing of entries

A) passing of entries

B) consistency convention

B) consistency convention

C) matching concept

C) matching concept

D) adjusting for revenue

D) adjusting for revenue

#3. The accounting convention which states that profit must not be recognized until realized while all losses should be adequately provided for it termed

A) materiality

A) materiality

B) objectivity

B) objectivity

C) consistency

C) consistency

D) conservatism

D) conservatism

#4. Accounting information is used by investors and creditors of a company to predict

A) future cash flows of the company

A) future cash flows of the company

B) future tax payments of the company

B) future tax payments of the company

C) potential merger candidates for the company

C) potential merger candidates for the company

D) appropriate remunerations for the company's staff

D) appropriate remunerations for the company's staff

#5. Antics Electronic Company recently bought six generators. Which of the following is the correct method of recording this transaction?

A) Debit generator account and credit cash account

A) Debit generator account and credit cash account

B) Debit purchases account and credit cash account

B) Debit purchases account and credit cash account

C) Debit cash accounts and credit purchases account

C) Debit cash accounts and credit purchases account

D) Debit cash account and credit generator account

D) Debit cash account and credit generator account

#6. When a business incurs labour cost in installing a fixed asset, the cost is treated as

A) additional cost to the asset

A) additional cost to the asset

B) business wages and salaries

B) business wages and salaries

C) installation cost of the asset

C) installation cost of the asset

D) business cost of the asset

D) business cost of the asset

#7. What is the cardinal rule of the double entry system?

A) Debit the increasing account and credit the decreasing account

A) Debit the increasing account and credit the decreasing account

B) Debit the receiving account and credit the giving account

B) Debit the receiving account and credit the giving account

C) Debit the asset account and credit the liability account

C) Debit the asset account and credit the liability account

D) Debit the revenue account and credit the expenditure account

D) Debit the revenue account and credit the expenditure account

#8. Mallam Gambo bought a freezer for his shop costing ₦10,500. In recording, he debited office expenses account and credited the bank account. What book-keeping error has he committed?

A) Error of commission

A) Error of commission

B) Error of reversal of entries

B) Error of reversal of entries

C) Error of principle

C) Error of principle

D) Compensating error

D) Compensating error

#9. The use of the folio in the ledger is for

A) referencing purposes

A) referencing purposes

B) particulars of the transaction

B) particulars of the transaction

C) the account titles

C) the account titles

D) only credit items

D) only credit items

#10. The suspense account is used to correct book-keeping error where the

A) amount involved is quite significant

A) amount involved is quite significant

B) item involved is not material

B) item involved is not material

C) item involved is unknown

C) item involved is unknown

D) error does not affect the agreement of the trial balance

D) error does not affect the agreement of the trial balance

#11. The discount column of a three column cashbook is not balanced off but periodically transferred to the discount account because discounts

A) are not important in cashbooks

A) are not important in cashbooks

B) are cash items only

B) are cash items only

C) do not form part of double entry

C) do not form part of double entry

D) are used for bank reconciliation

D) are used for bank reconciliation

#12. When is a petty cash account debited?

A) When the fund is established and every time money is spent

A) When the fund is established and every time money is spent

B) When the fund is established and every time it is replenished

B) When the fund is established and every time it is replenished

C) When the fund is established and when the size of the float is decreased

C) When the fund is established and when the size of the float is decreased

D) Every time money is drawn from the petty cash

D) Every time money is drawn from the petty cash

#13. When preparing a bank reconciliation statement, which of the following is deducted from the balance per bank statement?

A) Bank charges

A) Bank charges

B) Uncleared cheques

B) Uncleared cheques

C) Returned cheques

C) Returned cheques

D) unpresented cheques

D) unpresented cheques

#14. The financial position of an organization at a particular time can be ascertained from the

A) statement of sources and application of funds

A) statement of sources and application of funds

B) statement of retained earnings

B) statement of retained earnings

C) balance sheet

C) balance sheet

D) profit and loss account

D) profit and loss account

#15. Given; Purchases = ₦20,000 Sales = ₦40,000 Carriage inwards = ₦5,000 Carriage outwards = ₦5,000 Opening stock = ₦10,000 Closing stock = ₦5,000What is the cost of goods sold?

A) ₦30,000

A) ₦30,000

B) ₦25,000

B) ₦25,000

C) ₦20,000

C) ₦20,000

D) ₦15,000

D) ₦15,000

#16. The net profit or loss for the year is determined in profit and loss account after

A) deducting purchases from sales

A) deducting purchases from sales

B) deducting cost of goods sold from sales and adding administrative expenses

B) deducting cost of goods sold from sales and adding administrative expenses

C) adding commissions received to gross profit

C) adding commissions received to gross profit

D) eliminating all expenses from gross profit and adding any other income

D) eliminating all expenses from gross profit and adding any other income

#17. If a bad debt previously written off is subsequently repaid, the amount collected is recorded as an

A) income in the profit and loss account

A) income in the profit and loss account

B) income in the balance sheet

B) income in the balance sheet

C) additional cash in the profit and loss account

C) additional cash in the profit and loss account

D) expense in the balance sheet

D) expense in the balance sheet

#18. Beginning and ending accounts receivable balances were ₦8,000 and ₦15,000 respectively. If collections from customers during the period were ₦36,000, then total sales on account would be Options

A) ₦23,000

A) ₦23,000

B) ₦29,000

B) ₦29,000

C) ₦36,000

C) ₦36,000

D) ₦43,000

D) ₦43,000

#19. From which of the following sources are creditors control account most likely to be posted?

A) supplier's invoices

A) supplier's invoices

B) cash disbursements journal

B) cash disbursements journal

C) subsidiary debtors ledger

C) subsidiary debtors ledger

D) purchases journal

D) purchases journal

#20. Which of the following categories of labour cost will be classified as direct?

A) accountant's salary

A) accountant's salary

B) factory workers' salary

B) factory workers' salary

C) managing director's salary

C) managing director's salary

D) cashier's salary

D) cashier's salary

#21. The major difference between the receipt and payment account and the income and expenditure account is that while the former

A) is kept by the treasurer, the latter is not

A) is kept by the treasurer, the latter is not

B) deals with all receipts and payments in the year regardless of the time it relates to, the latter is for just that year

B) deals with all receipts and payments in the year regardless of the time it relates to, the latter is for just that year

C) is a T-account, the latter is not

C) is a T-account, the latter is not

D) is not in the ledger, the latter is

D) is not in the ledger, the latter is

#22. The net profit from a trading account of a non-profit making organization would be treated as income in the

A) income and expenditure account

A) income and expenditure account

B) receipt and payment account

B) receipt and payment account

C) balance sheet

C) balance sheet

D) statement of affairs

D) statement of affairs

#23. The major distinguishing element between the final accounts of a partnership and a sole trader is the

A) drawings account

A) drawings account

B) appropriation account

B) appropriation account

C) capital account

C) capital account

D) creditors account

D) creditors account

#24. Goodwill appears in the books of a business only if it has been

A) purchased at a certain price

A) purchased at a certain price

B) raised in connection with the admission of a new partner

B) raised in connection with the admission of a new partner

C) raised to account for the true value of a business on the death of a partner

C) raised to account for the true value of a business on the death of a partner

D) raised in order to prevent the balance sheet showing that the business is insolvent

D) raised in order to prevent the balance sheet showing that the business is insolvent

#25. Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: ₦40,000, ₦50,000 and ₦70,000. The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for ₦50,000 cash. Wamo's equity in the resulting partnership is

A) ₦32,000

A) ₦32,000

B) ₦40,000

B) ₦40,000

C) ₦42,000

C) ₦42,000

D) ₦50,000

D) ₦50,000

#26. Under which of the following conditions is a partnership dissolved?

A) Change of partnership's head office

A) Change of partnership's head office

B) admission of a new partner

B) admission of a new partner

C) Purchase of a large quantity of fixed asset

C) Purchase of a large quantity of fixed asset

D) Retirement of a manager who is not a partner

D) Retirement of a manager who is not a partner

#27. when shares issued are paid for, accounting entry required is

A) debit bank or cash account and credit share capital and/or premium account

A) debit bank or cash account and credit share capital and/or premium account

B) credit bank or cash account and debit share capital and/or premium account

B) credit bank or cash account and debit share capital and/or premium account

C) debit shares account and credit capital account

C) debit shares account and credit capital account

D) credit shares account and debit capital account

D) credit shares account and debit capital account

#28. A limited liability company has an authorized share capital of ₦50 million split into 100 million shares 80 million share was offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued What is the issued capital

A) ₦40

A) ₦40

B) ₦48

B) ₦48

C) ₦50

C) ₦50

#29. The document setting out the regulations regarding shares, meetings and internal organization of a company is known as

A) memorandum of association

A) memorandum of association

B) article of association

B) article of association

C) prospectus

C) prospectus

D) company law

D) company law

#30. An advantage of using accounting ratios is that they

A) can be easily calculated

A) can be easily calculated

B) facilitate decision making

B) facilitate decision making

C) are stipulated by law

C) are stipulated by law

D) shows error and fraud

D) shows error and fraud

#31. The expenditure on a good or services which is consumed either immediately or within a current accounting period is called

A) fixed expenditure

A) fixed expenditure

B) capital expenditure

B) capital expenditure

C) annual expenditure

C) annual expenditure

D) recurrent expenditure

D) recurrent expenditure

#32. The receipt from a special tax levy to pay maturing interest obligation are recorded in

A) capital fund project

A) capital fund project

B) Debt Service Fund

B) Debt Service Fund

C) Tax Assessment Fund

C) Tax Assessment Fund

D) Special Revenue Fund

D) Special Revenue Fund

#33. The cash bass of accounting requires the recognition of revenue only when they are

A) due

A) due

B) earned

B) earned

C) paid

C) paid

D) received

D) received

#34. The amount of individual items on a government budget is called

A) vote

A) vote

B) deposit

B) deposit

C) loan

C) loan

D) grant

D) grant

Finish

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