Financial Accounting Past Questions v21 (JAMB/WAEC/NECO); These Financial Accounting questions are for students who are sitting for the following examinations:

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Financial Accounting Past Questions v21 (JAMB/WAEC/NECO)

Results

#1. A financial analyst needs accounting information to

A) maintain the production section of the business

A) maintain the production section of the business

B) know why transactions cause increase and decreases in assets

B) know why transactions cause increase and decreases in assets

C) advise on how to manage the business

C) advise on how to manage the business

D) know how to record transaction in T account

D) know how to record transaction in T account

#2. Goods worth ₦300 was transferred from department Q to P. Similarly, P's total expenses for the period was ₦200. Department P's net profit was

A) ₦5200

A) ₦5200

B) ₦3000

B) ₦3000

C) ₦2800

C) ₦2800

D) ₦2500

D) ₦2500

#3. Given that the balance as per cash book after adjustment was ₦6315, nu-presented cheques ₦1000 and the bank statement balance ₦3240. What was the balance of the nu-credited cheques

A) ₦4075

A) ₦4075

B) ₦4240

B) ₦4240

C) ₦3315

C) ₦3315

D) ₦3075

D) ₦3075

#4. Use this information below to answer this question.Trading Account (Extract).................N.............................N...... Opening stock...19500........Sales............96 000.. Add purchases...68700................................. ................88200................................. Less closing stock..?................................. Cost of goods sold..?................................. Gross profit C/D....?................................. ....................?..........................?...... The gross profit margin is 20% Determine the closing stock

A) ₦76 800

A) ₦76 800

B) ₦67 800

B) ₦67 800

C) ₦14 100

C) ₦14 100

D) ₦11 400

D) ₦11 400

#5. Give: 1. Ascertainment of the particulars of the proposed company II. Preparation of the incorporation documents III. Filling of the documents IV. Registration of the company From the information above, the stages involved in the formation of a company are

A) I, II and III

A) I, II and III

B) I, II, III and IV

B) I, II, III and IV

C) I,IIand IV

C) I,IIand IV

D) II, III and IV

D) II, III and IV

#6. One of the major features of bookkeeping is that it?

A) provides permanent records for all financial transactions

A) provides permanent records for all financial transactions

B) is futuristic in nature

B) is futuristic in nature

C) accpets responsibility for all wrong postings

C) accpets responsibility for all wrong postings

D) does not give room for double entry procedures

D) does not give room for double entry procedures

#7. Which of the following accounting conventions suggests that accountants should use a method of valuation that understates rather than over-states results?

A) Conservatism

A) Conservatism

B) Historical

B) Historical

C) Monetary

C) Monetary

D) Cost

D) Cost

#8. A financial analyst needs accounting information to?

A) maintain the production section of the business

A) maintain the production section of the business

B) know why transactions cause increase and decreases in assets

B) know why transactions cause increase and decreases in assets

C) advise on how to manage the business

C) advise on how to manage the business

D) know how to record transaction in T account

D) know how to record transaction in T account

#9. One basic assumption of the double entry theory is that it allows?

A) two credit entries at the same time

A) two credit entries at the same time

B) two debit entries at the same time

B) two debit entries at the same time

C) debit and credit two credit entries at the same time

C) debit and credit two credit entries at the same time

D) debit and credit two credit entries in corresponding account

D) debit and credit two credit entries in corresponding account

#10. Given: Sales.....................₦4000 Light expenses............₦2900 Rent......................₦1500 Purchases.................₦7500 Debtors...................₦6000 Creditors.................₦29000 Drawings..................₦25 Bank......................₦400 General expenses..........₦1500 Calculate the total of trial balance?

A) ₦64 300

A) ₦64 300

B) ₦46 825

B) ₦46 825

C) ₦41 850

C) ₦41 850

D) ₦33 325

D) ₦33 325

#11. Bariga, a stock broker bought stationery for ₦12000 by cash. To record this transaction, debit?

A) cash and credit stationery

A) cash and credit stationery

B) purchase and credit stationery

B) purchase and credit stationery

C) stationery and credit cash

C) stationery and credit cash

D) stationery and credit purchases

D) stationery and credit purchases

#12. Use the information below to answer questions . (i) Cash at bank (ii) Cash in hand (iii) Premises (iv) Land (v)Creditors (vi)loan from friends/bank. What are the current assets?

A) i and ii

A) i and ii

B) i and v

B) i and v

C) ii and iv

C) ii and iv

D) iii and v

D) iii and v

#13. Given: ................Cash Book........................ Capital..........₦6 500........purchases.....₦12 250 Sales............₦30 000........Rent..........₦9 100 ................................Motor vehicle.₦2 400 Find the bank balance?

A) ₦71 250 credit

A) ₦71 250 credit

B) ₦71 250 debit

B) ₦71 250 debit

C) ₦95 000 credit

C) ₦95 000 credit

D) ₦95 000 debit

D) ₦95 000 debit

#14. An entry made in bank column of cash book to record movement of cash between the office and the bank is the?

A) real entry

A) real entry

B) special entry

B) special entry

C) direct entry

C) direct entry

D) contra entry

D) contra entry

#15. Abba offers 5% cash discount on goods worth ₦10 000, The discount allowed account is to be?

A) debited with ₦10 000

A) debited with ₦10 000

B) credited with ₦10 000

B) credited with ₦10 000

C) debited with ₦500

C) debited with ₦500

D) credited with ₦500

D) credited with ₦500

#16. Commission-on-turnover is charged on?

A) current accounts only

A) current accounts only

B) savings accounts only

B) savings accounts only

C) fixed deposit accounts only

C) fixed deposit accounts only

D) all bank accounts

D) all bank accounts

#17. The medium that enables the ATM to read the account details and process transaction directly with the account held in the bank is the?

A) smart card

A) smart card

B) communication network

B) communication network

C) magnetic strip

C) magnetic strip

D) computerized account

D) computerized account

#18. The accounting principle that is applied to check arbitrary actions on the part of accountants is?

A) consistency

A) consistency

B) materiality

B) materiality

C) objectivity

C) objectivity

D) realization

D) realization

#19. The loss of equipment in a fire disaster results in?

A) a decrease in current assets

A) a decrease in current assets

B) an increase in liabiities and assets

B) an increase in liabiities and assets

C) a decrease in assets and capital

C) a decrease in assets and capital

D) an increase in liabilities and a decrease in assets

D) an increase in liabilities and a decrease in assets

#20. A source document is used for verifying the?

A) amount due to creditors

A) amount due to creditors

B) actual cost of an asset

B) actual cost of an asset

C) selling price of goods

C) selling price of goods

D) amount due from debtors

D) amount due from debtors

#21. The rule of accounting equation requires that account payable should be placed under?

A) liabilities

A) liabilities

B) equities

B) equities

C) assets

C) assets

D) capital

D) capital

#22. A debit in the suspense accounting will appear in the balance sheet as?

A) a current asset

A) a current asset

B) a current lability

B) a current lability

C) capital

C) capital

D) drawings

D) drawings

#23. The receipt whose name appears on a cheque is called a?

A) payer

A) payer

B) drawer

B) drawer

C) drawee

C) drawee

D) payee

D) payee

#24. The imprest account is subsidiary to the?

A) ledger account

A) ledger account

B) bank account

B) bank account

C) cash book

C) cash book

D) bank column

D) bank column

#25. Zakari started a business in January 2000. He bought a shop costing ₦54,000 and stock worth ₦7,600. Profit for the year amounted to 22,100. His closing capital was ₦73,800. Zakari's personal drawings amounted to?

A) ₦2,300

A) ₦2,300

B) ₦9,900

B) ₦9,900

C) ₦17,100

C) ₦17,100

D) ₦19,500

D) ₦19,500

#26. The balance on the provision for depreciation account is?

A) added to fixed assets on the balance sheet

A) added to fixed assets on the balance sheet

B) deducted from the fixed assets on the balance sheet

B) deducted from the fixed assets on the balance sheet

C) deducted from the profitand loss account

C) deducted from the profitand loss account

D) added to current liabilities of the account

D) added to current liabilities of the account

#27. Given: Rates paid during the year amounted to ₦2,250 at ₦125 per month and 1,035 was paid for electricity in the same period at ₦115 per month. Determine the amount of prepaid rates?

A) ₦345

A) ₦345

B) ₦750

B) ₦750

C) ₦1,380

C) ₦1,380

D) ₦1,500

D) ₦1,500

#28. Where closing stock is undervalued, the effect is?

A) an increase in gross profit

A) an increase in gross profit

B) a decrease in gross profit

B) a decrease in gross profit

C) an increase in purchases

C) an increase in purchases

D) a decrease in purchase

D) a decrease in purchase

#29. The balancing figure in the purchases ledger control account is?

A) ₦15,828

A) ₦15,828

B) ₦15,720

B) ₦15,720

C) ₦14,940

C) ₦14,940

D) ₦14,694

D) ₦14,694

#30. Use the information below to answer the question: Opening balance.............................₦10,640 Purchases...................................₦26,912 Returns inwards.............................₦492 Returns outwards............................₦810 Cash discount received......................₦1,348 Cash discount allowed.......................₦1,560 Cash paid to suppliers......................₦20,808 At the year end, the purchases ledger showed a debit balance of ₦108. The total on the debit side of the purchases ledger control account will be?

A) ₦22,966

A) ₦22,966

B) ₦22,156

B) ₦22,156

C) ₦21,834

C) ₦21,834

D) ₦21054

D) ₦21054

#31. In a sales ledger, contra entry is found on the?

A) debit side of the debtors' control account

A) debit side of the debtors' control account

B) debit side of the crebtors' control account

B) debit side of the crebtors' control account

C) creadit side of the debtors' control account

C) creadit side of the debtors' control account

D) creadit side of the credtors' control account

D) creadit side of the credtors' control account

#32. The beginning and ending accounts receivable balances were ₦20,000 and ₦30,000 respectively. The collection from customers during the period was ₦70,000. What was the total sale on account?

A) ₦20,000

A) ₦20,000

B) ₦60,000

B) ₦60,000

C) ₦80,000

C) ₦80,000

D) ₦120,000

D) ₦120,000

#33. Given: General expenses account. Paid by cheque..................₦671 Paid by cash....................₦70 Accrued b/f.....................₦65 Accrued c/f.....................₦115Determine how much to be charged to profit and loss account?

A) ₦606

A) ₦606

B) ₦786

B) ₦786

C) ₦791

C) ₦791

D) ₦856

D) ₦856

#34. In converting single entry to final account, the balancing figures on the income and expenses accounts are transferred to the?

A) revenue and expenditure account

A) revenue and expenditure account

B) receipts and payments account

B) receipts and payments account

C) profit and loss apporpriation account

C) profit and loss apporpriation account

D) profit and loss account

D) profit and loss account

#35. Use the information below to answer the question. Beginning inventory............N? Purchases......................N? Ending inventory...............₦4,800 Sales..........................₦12,800 Wages..........................₦1,040 Gross profit...................₦5,900 The beginning inventory was estimated at 80% of sales. Determine the amount for the beginning inventory

A) ₦20,140

A) ₦20,140

B) ₦10,240

B) ₦10,240

C) ₦8,140

C) ₦8,140

D) ₦7,240

D) ₦7,240

#36. What is the figure for purchases?

A) ₦2,400

A) ₦2,400

B) ₦2,500

B) ₦2,500

C) ₦4,200

C) ₦4,200

D) ₦5,200

D) ₦5,200

E) No option indicated

E) No option indicated

#37. Cost classification in relation to charges is determined by the level of?

A) raw materials

A) raw materials

B) labour

B) labour

C) activity

C) activity

D) profitability

D) profitability

#38. Use the information below to answer the question. Materials consumed...................₦16,600 Direct cost..........................₦5,400 Factory rent.........................₦2,300 Factory lighting.....................₦1,200 Cost of production to be transferred at cost plus 20% mark-up. The gross profit on manufacture is

A) ₦6,120

A) ₦6,120

B) ₦6,100

B) ₦6,100

C) ₦5,100

C) ₦5,100

D) ₦5,000

D) ₦5,000

#39. The market value of goods produced is?

A) ₦30,500

A) ₦30,500

B) ₦30,600

B) ₦30,600

C) ₦31,600

C) ₦31,600

D) ₦31,620

D) ₦31,620

#40. Use the information below to answer the question. On January 1, 2000, a club's assets and liabilities were as follows: Club house...................₦8,000 Subscription.................₦300 Cash.........................₦1,000 Wages owed...................₦100 The club has 50 members, and the annual subscription is ₦100 per member. Subscription received is ₦4,000, and this includes 1999 arrears of ₦200. The accumulated fund is

A) ₦9,400

A) ₦9,400

B) ₦9,300

B) ₦9,300

C) ₦9,200

C) ₦9,200

D) ₦9,100

D) ₦9,100

#41. In the balance sheet, the subscription in arrears will be?

A) ₦200

A) ₦200

B) ₦300

B) ₦300

C) ₦1,200

C) ₦1,200

D) ₦1,300

D) ₦1,300

#42. Where the debit side of the income and expenditure account is higher than the credit side, the difference is a?

A) deflicit

A) deflicit

B) surplus

B) surplus

C) gain

C) gain

D) loss

D) loss

Finish

Practice other past questions here

Practice other Financial Accounting Past Questions Here