Financial Accounting Past Questions v2 (JAMB/WAEC/NECO)

Financial Accounting Past Questions v2 (JAMB/WAEC/NECO); These Financial Accounting questions are for students who are sitting for the following examinations:

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#1. Which of the following statements is not valid?

A) provision for bad debts is deducted from debtors total in the Balance sheet

A) provision for bad debts is deducted from debtors total in the Balance sheet

B) An increase in provision for bad debts appears on the debi side of the profit and loss account

B) An increase in provision for bad debts appears on the debi side of the profit and loss account

C) a decrease in the provison for bad debts appears on the credit side of profit and loss accoun

C) a decrease in the provison for bad debts appears on the credit side of profit and loss accoun

D) the bas debt account is closed to the debit side of the profit and loss account

D) the bas debt account is closed to the debit side of the profit and loss account

E) bad debt is a deduction from debtors total afte making provision for bad and boughtful debts

E) bad debt is a deduction from debtors total afte making provision for bad and boughtful debts

#2. Carriage outwards is charged to the

A) debit side of profit and loss account

A) debit side of profit and loss account

B) credit side of profit and loss account

B) credit side of profit and loss account

C) credit side of trading account

C) credit side of trading account

D) debit side of profit and loss Appropritation account

D) debit side of profit and loss Appropritation account

E) debit side of Balance under current liabilities

E) debit side of Balance under current liabilities

#3. Where a proprietor withdraws cash from bank for office use, the entries would be

A) credit cash account, debit bank account

A) credit cash account, debit bank account

B) debit cash account, credit bank account

B) debit cash account, credit bank account

C) debit officer account, credit bank account

C) debit officer account, credit bank account

D) debit drawings account, credit bank account

D) debit drawings account, credit bank account

#4. A debit cash balance of ₦26,900 was brought down as ₦24,300. The entries necessary to correct the error are

A) debit cash account ₦5,200, credit suspense account ₦5,200

A) debit cash account ₦5,200, credit suspense account ₦5,200

B) credit cash account ₦5,200, debit suspense account ₦5,200

B) credit cash account ₦5,200, debit suspense account ₦5,200

C) debit cash account ₦2,600, credit suspense account ₦2,600

C) debit cash account ₦2,600, credit suspense account ₦2,600

D) credit cash account ₦2,600, debit suspense account ₦2,600

D) credit cash account ₦2,600, debit suspense account ₦2,600

E) credit cash account ₦2,600, debit bank account ₦2,600

E) credit cash account ₦2,600, debit bank account ₦2,600

#5. When a buyer is undercharged, the seller forwards

A) undercast note

A) undercast note

B) consignment invoice

B) consignment invoice

C) purchases in voice

C) purchases in voice

D) debit note

D) debit note

E) credit note

E) credit note

#6. Cash discount is given for

A) buying in large quantity

A) buying in large quantity

B) prompt settlement of account

B) prompt settlement of account

C) being a cash reqular customer

C) being a cash reqular customer

D) introducing other customers

D) introducing other customers

E) sales returns

E) sales returns

#7. Where there is no partnership agreement, any contribution in excess of the agree capital attracts

A) no interest at all

A) no interest at all

B) interest at the rate of 2 1 2 % per annum

B) interest at the rate of 2 1 2 % per annum

C) interest at the rate 5% per anuum

C) interest at the rate 5% per anuum

D) interest at all

D) interest at all

E) interest at the per annum

E) interest at the per annum

#8. Which of he following is a current asset item?

A) goodwill

A) goodwill

B) overdraft

B) overdraft

C) preliminary expenses

C) preliminary expenses

D) prepayments

D) prepayments

E) outstanding expense

E) outstanding expense

#9. Which of the following is a Real account item?

A) wages and salaries account

A) wages and salaries account

B) machinery account

B) machinery account

C) capital account

C) capital account

D) drawings account

D) drawings account

E) alagja and sons account

E) alagja and sons account

#10. A plant which costs ₦1,000 and has a residual value of ₦125 is depreciated at 20% per annum. Using the diminishing balance method, what is the amount of depreciation for the second year?

A) ₦128

A) ₦128

B) ₦140

B) ₦140

C) ₦160

C) ₦160

D) ₦175

D) ₦175

E) ₦200

E) ₦200

#11. Which of the following serves the same purpose as the income and expenditure account of a non-trading organization?

A) trading account

A) trading account

B) profit and loss account

B) profit and loss account

C) balance sheet

C) balance sheet

D) income distribution account

D) income distribution account

E) appropriate account

E) appropriate account

#12. A plant which costs ₦1,000 and has a residual value of ₦125 is depreciated at 20% per annum. Using the straight-line method, what is the depreciation charge for the second year?

A) ₦128

A) ₦128

B) ₦140

B) ₦140

C) ₦160

C) ₦160

D) ₦175

D) ₦175

E) ₦200

E) ₦200

#13. A plant which costs ₦1,000 and has a residual value of ₦125 is depreciated at 20% per annum. Using the diminishing balance, what is the net book value at the second year?

A) ₦512

A) ₦512

B) ₦525

B) ₦525

C) ₦640

C) ₦640

D) ₦700

D) ₦700

#14. Which of the following is treated under partnership appropriation account?

A) interest on loan

A) interest on loan

B) salary of workers

B) salary of workers

C) electricity

C) electricity

D) salary of partner

D) salary of partner

#15. Debtors at start was ₦5,620 and at close ₦3,460. Cash and cheques received from customers amounted to ₦16,330. Credit sales for the year valued Options

A) ₦3,460

A) ₦3,460

B) ₦5,620

B) ₦5,620

C) ₦14,170

C) ₦14,170

D) ₦16,330

D) ₦16,330

#16. The excess of current assets over current liabilities is

A) fixed capital

A) fixed capital

B) registered capital

B) registered capital

C) nominal capital

C) nominal capital

D) paid-up capital

D) paid-up capital

E) working capital

E) working capital

#17. Rate of stock turnover is defined as

A) purchases over stock

A) purchases over stock

B) cost of goods available for sale over total of opening and closing stock

B) cost of goods available for sale over total of opening and closing stock

C) cost of goods available for sale ovet total of opening and closing stock

C) cost of goods available for sale ovet total of opening and closing stock

D) cost of goods sold over total opening and closing stock

D) cost of goods sold over total opening and closing stock

E) cost of goods sold over average stock

E) cost of goods sold over average stock

#18. Which of the following is not true of a partnership business without written agreement?

A) profit and losses will shared equally

A) profit and losses will shared equally

B) interest not to be paid on capital

B) interest not to be paid on capital

C) interest on drawings is to be at the rate 5% per annum

C) interest on drawings is to be at the rate 5% per annum

D) salaries are not allowed to partners

D) salaries are not allowed to partners

#19. Creditors at start was ₦940 and purchases for the year was ₦4,060. During the year, cash paid to creditors was ₦3,890. ₦490 was received as discount. What is the creditors amount in the balance sheet?

A) ₦450

A) ₦450

B) ₦620

B) ₦620

C) ₦660

C) ₦660

D) ₦1,110

D) ₦1,110

E) ₦1,430

E) ₦1,430

#20. A cheque drawn for ₦1200 was entered in the cash book as a receipt. The accounting entries are

A) credit cash account, debit bank account with ₦1,200

A) credit cash account, debit bank account with ₦1,200

B) debit cash account, creidit bank account with ₦1,200

B) debit cash account, creidit bank account with ₦1,200

C) credit cash account, debit suspense account with ₦2,400

C) credit cash account, debit suspense account with ₦2,400

D) debit cash account, debit suspense account with ₦2,400

D) debit cash account, debit suspense account with ₦2,400

E) credit bank account, debit suspense account with ₦2,400

E) credit bank account, debit suspense account with ₦2,400

#21. Debtors on 1st January was ₦1,490 and sales for the year was ₦5,760. Cash received from debtors during the year was ₦5,410. Bad debt written off was ₦410. Discount allowed amounted to ₦320. What was the debtors' balance at the end of the year?

A) ₦1,110

A) ₦1,110

B) ₦1,430

B) ₦1,430

C) ₦1,520

C) ₦1,520

D) ₦1,750

D) ₦1,750

E) ₦2,980

E) ₦2,980

#22. Which of the following errors will not allow a trial balance to agree?

A) where a transaction is completely omitted from the books

A) where a transaction is completely omitted from the books

B) where the correct amount is entered but in the wrong account

B) where the correct amount is entered but in the wrong account

C) where the figure entered on one side is different from the one entered on the other side

C) where the figure entered on one side is different from the one entered on the other side

D) where an item is entered in the wrong class of account

D) where an item is entered in the wrong class of account

E) where the correct amount is used but each item is shown on the wrong side of the account

E) where the correct amount is used but each item is shown on the wrong side of the account

#23. Profit expressed as a proportion of cost price is known as

A) gross profit

A) gross profit

B) profit make-up

B) profit make-up

C) profitt margin

C) profitt margin

D) profit percentage

D) profit percentage

E) profit ratio

E) profit ratio

#24. Bosun bought goods worth ₦500 and sold it at a margin of 20% on selling price. For how much did he sell the goods?

A) ₦100

A) ₦100

B) ₦125

B) ₦125

C) ₦500

C) ₦500

D) ₦600

D) ₦600

E) ₦627890

E) ₦627890

#25. Which of the following does not appear on the debit side of a company's profit and loss appropriation account?

A) compny tax

A) compny tax

B) unappropriated surplus

B) unappropriated surplus

C) proposed dividend

C) proposed dividend

D) transfer to rserve

D) transfer to rserve

E) interim dividend paid

E) interim dividend paid

#26. Which of the following is not a profit and loss appropriation account item?

A) staff salaries

A) staff salaries

B) interest on capital

B) interest on capital

C) interest on money advanced by partners

C) interest on money advanced by partners

D) share of profit

D) share of profit

E) interest and drawings

E) interest and drawings

#27. A typewriter for office use sold for ₦5,000 was posted to sales account. This is an error of a

A) omission

A) omission

B) compensation

B) compensation

C) commission

C) commission

D) principle

D) principle

#28. Goods purchased for ₦92 was entered in the books as ₦29. This is an error of

A) compensation

A) compensation

B) omission

B) omission

C) commission

C) commission

D) principle

D) principle

E) original entry

E) original entry

#29. John brought in an additional plant into his business. What are the accounting entries necessary to reflect the transaction?

A) debit plant account, credit current account

A) debit plant account, credit current account

B) debit current account, credit plant account

B) debit current account, credit plant account

C) credit plannt account, credit profit and loss account

C) credit plannt account, credit profit and loss account

D) debit profit and loss account, credit plant account

D) debit profit and loss account, credit plant account

E) debit plant account, credit capital accoun

E) debit plant account, credit capital accoun

#30. Patent and Trade mark are classified under

A) fixed assets

A) fixed assets

B) current assets

B) current assets

C) intangible assets

C) intangible assets

D) wasting assets

D) wasting assets

E) investments

E) investments

#31. A machine bought for ₦7,000 was estimated to have a useful life of 4 years and a scrap value of ₦500. Using the straight line method, what was the amount of depreciation charged per annum?

A) ₦1,313

A) ₦1,313

B) ₦1,406

B) ₦1,406

C) ₦1,625

C) ₦1,625

D) ₦1,750

D) ₦1,750

#32. Fixed assets include

A) prepayment

A) prepayment

B) stock

B) stock

C) accrual

C) accrual

D) land

D) land

#33. Deferred charges are also known as

A) accrued expenses

A) accrued expenses

B) accrued income

B) accrued income

C) prepaid expenses

C) prepaid expenses

D) income received in advance

D) income received in advance

E) preliminary expenses

E) preliminary expenses

Finish

Practice other past questions here

Practice other Financial Accounting Past Questions Here