Financial Accounting Past Questions v26 (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 v26 (JAMB/WAEC/NECO)

Results

#1. The formula for calculating depreciation using straight line method is

A) Scrape Value + Sales U s e f u l l i f e

A) Scrape Value + Sales U s e f u l l i f e

B) Cost − Scrape Value U s e f u l l i f e

B) Cost − Scrape Value U s e f u l l i f e

C) Sales − Scrape Value U s e f u l l i f e

C) Sales − Scrape Value U s e f u l l i f e

D) Purchases + Sales U s e f u l l i f e

D) Purchases + Sales U s e f u l l i f e

#2. Determine the closing stock.

A) ₦30,000

A) ₦30,000

B) ₦40,000

B) ₦40,000

C) ₦50,000

C) ₦50,000

D) ₦60,000

D) ₦60,000

#3. One of the the differences between bookkeeping and accounting is that the former

A) records data while the latter interprets

A) records data while the latter interprets

B) is regarded as the language of the business while the latter ascertains its strenght

B) is regarded as the language of the business while the latter ascertains its strenght

C) interprets data while the latter records it

C) interprets data while the latter records it

D) summarises information while the latter communicates it

D) summarises information while the latter communicates it

#4. The concept which states that revenue should be recognized at the point when the sale is deemed to have been made is

A) matching

A) matching

B) consistency

B) consistency

C) realization

C) realization

D) going concern

D) going concern

#5. A cheque of #5,000 paid to Sulieman had been correctly entered in the cash book but had not been entered in Sulieman's account. To correct this error, debit Sulieman's account and credit

A) cash account

A) cash account

B) bank account

B) bank account

C) suspense account

C) suspense account

D) purchases account

D) purchases account

#6. Aduke Motors bought three Toyota Hilux vans on cash at the cost of #6,000,000, on debiting the vehicle account, the corresponding credit for the purchase will appear in the

A) sales day book

A) sales day book

B) purchases day book

B) purchases day book

C) sales subsidiary book

C) sales subsidiary book

D) cash book

D) cash book

#7. Which of the following affects the accuracy and authenticity of the trial balance?

A) Error of ommission

A) Error of ommission

B) Error of commission

B) Error of commission

C) Error of transposition

C) Error of transposition

D) Error of original entry

D) Error of original entry

#8. A ledger is classified into

A) private, sales and purchases

A) private, sales and purchases

B) personal, general and private

B) personal, general and private

C) general, private and sales

C) general, private and sales

D) sales, purchases and general

D) sales, purchases and general

#9. The book of account in which information from the source documents are recorded consists of

A) debit and credit notes

A) debit and credit notes

B) ledger and subsidiary books

B) ledger and subsidiary books

C) prepayments and accruals

C) prepayments and accruals

D) profit and loss and balance sheet

D) profit and loss and balance sheet

#10. The accounting entries to record a cheque issued by a business is to

A) debit cash book and credit drawer

A) debit cash book and credit drawer

B) credit cash book and debit drawer

B) credit cash book and debit drawer

C) debit cash book and credit suspense account

C) debit cash book and credit suspense account

D) credit cash book and debit suspense account

D) credit cash book and debit suspense account

#11. Given:If Emeka Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 12 and half percent. Assuming #22,800 worth of goods were purchased and settled within 5 days, what will be the amount to be credited in the cash column of the company's cash book?

A) #25,650

A) #25,650

B) #22,800

B) #22,800

C) #19,950

C) #19,950

D) #18,240

D) #18,240

#12. The major advantage of an imprest system is that it

A) ensures a proper accountability for every expenditure

A) ensures a proper accountability for every expenditure

B) trains the young accountants in preparation for greater responsibilities

B) trains the young accountants in preparation for greater responsibilities

C) relieves the cheif cashier of the numerous petty cash payments

C) relieves the cheif cashier of the numerous petty cash payments

D) serves as an analysis column for every expenses

D) serves as an analysis column for every expenses

#13. Petty cash book records transactions on

A) the debit side only

A) the debit side only

B) the credit side only

B) the credit side only

C) both credit and debit sides

C) both credit and debit sides

D) reversed entry

D) reversed entry

#14. A major way by which the headquarters guard against fraud in branches on cash remittance is through the introduction of

A) imprest system only

A) imprest system only

B) direct purchase by branch

B) direct purchase by branch

C) separate accountant for the branch

C) separate accountant for the branch

D) credit sales by only the headquarters

D) credit sales by only the headquarters

#15. 1. Cash sales 11. Cash purchases 111. Cash discount allowed 1V. Cash payment V. Cash receiptsWhich of the following are recorded on the debit side of the cash book

A) 1 and 11

A) 1 and 11

B) 1 and 111

B) 1 and 111

C) 1 and V

C) 1 and V

D) 1 and 1V

D) 1 and 1V

#16. An item credited in the bank statement but yet to be recorded in the firm's cash book is

A) bank loan

A) bank loan

B) contract payment

B) contract payment

C) standing order

C) standing order

D) direct deposit

D) direct deposit

#17. The major focus of the trading account is to show

A) net profit

A) net profit

B) gross margin

B) gross margin

C) total purchases

C) total purchases

D) total sales

D) total sales

#18. If goods were bought from Tanko at a cost price of #9,000 with a cash discount of 5%, how much will be paid assuming prompt payment was made?

A) #4,500

A) #4,500

B) #8,550

B) #8,550

C) #9,000

C) #9,000

D) #9,450

D) #9,450

#19. If machine X cost #600,000 with anticipated life span of five years and estimated scrap value of #50,000, using straight line method; depreciation charged for two years will be

A) #700,000

A) #700,000

B) #240,000

B) #240,000

C) #220,000

C) #220,000

D) #202,000

D) #202,000

#20. Balance sheet (Extract)Creditors #7,940 Prepaid expenses ₦290 Accrual expenses ₦323 Stock #4,500 Cash balance #4,956 Debtors ₦905The value of the current assets will be

A) #10,361

A) #10,361

B) #10,651

B) #10,651

C) #17,396

C) #17,396

D) #17,848

D) #17,848

#21. Balance sheet (Extract)Creditors #7,940 Prepaid expenses ₦290 Accrual expenses ₦323 Stock #4,500 Cash balance #4,956 Debtors ₦905Determine the current liabilities

A) #8,553

A) #8,553

B) #8,263

B) #8,263

C) #7,940

C) #7,940

D) #1,228

D) #1,228

#22. The excess of sales over cost of goods sold is

A) gross sale

A) gross sale

B) gross profit

B) gross profit

C) net profit

C) net profit

D) net sales

D) net sales

#23. 2/3 Purchases 900 books at #1,000 each 4/3 Purchases 590 books at ₦950 each 15/3 Sales 300 books at #900 eachDetermine the cost of goods sold using FIFO

A) #285,000

A) #285,000

B) #300,000

B) #300,000

C) #570,000

C) #570,000

D) #600,000

D) #600,000

#24. 2/3 Purchases 900 books at #1,000 each 4/3 Purchases 590 books at ₦950 each 15/3 Sales 300 books at #900 eachCalculate the cost of goods available for sale using LIFO

A) #801,000

A) #801,000

B) #1,100,500

B) #1,100,500

C) #1,160,500

C) #1,160,500

D) #1,175,500

D) #1,175,500

#25. The control account is used in facilitating

A) the location of errors in the various accounts

A) the location of errors in the various accounts

B) up to date bank transactions

B) up to date bank transactions

C) the payment of debts and liabilities of the firm

C) the payment of debts and liabilities of the firm

D) assets distribution with respect to income

D) assets distribution with respect to income

#26. A book of account that possesses the features of both day book and ledger is

A) sales day book

A) sales day book

B) cash book

B) cash book

C) purchases day book

C) purchases day book

D) returns day book

D) returns day book

#27. The value of the sales ledger control account is derived from the summation of

A) the total debtors' account

A) the total debtors' account

B) the total creditors' account

B) the total creditors' account

C) all day books

C) all day books

D) both the debtors'and creditors' accounts

D) both the debtors'and creditors' accounts

#28. Subscription in arrears is treated in the balance sheet of a club as

A) current asset

A) current asset

B) current liability

B) current liability

C) fixed asset

C) fixed asset

D) intangible asset

D) intangible asset

#29. Social Club Subscription (Extract)31/12/2009 Subscription accrued #18,900 Subscription received in advance #16,400 Subscription received during The year 2009 #38,570Determine the amount of subscription for the year

A) #57,470

A) #57,470

B) #41,070

B) #41,070

C) #40,210

C) #40,210

D) #35,300

D) #35,300

#30. Social Club Subscription (Extract)31/12/2009 Subscription accrued #18,900 Subscription received in advance #16,400 Subscription received during The year 2009 #38,570What is the amount of subscription to be shown as liability in the balance sheet as at December 2009

A) #14,200

A) #14,200

B) #16,400

B) #16,400

C) #18,900

C) #18,900

D) #20,500

D) #20,500

#31. Given:Sales: ₦180,000 Stock 1/1: ₦25,000 Purchases: ₦110,000 Sales returns: ₦1000 Purchases returns: ₦1,500 Gross profit: ₦58,000 Determine the value of stock as at 31st December

A) ₦8000

A) ₦8000

B) ₦9,500

B) ₦9,500

C) ₦12,500

C) ₦12,500

D) ₦15,500

D) ₦15,500

#32. In a departmental account, where no basis of apportionment exist, apportionment is

A) on profit basis

A) on profit basis

B) according to employee decision

B) according to employee decision

C) according to material available

C) according to material available

D) on equal basis

D) on equal basis

#33. In a departmental account, the expenses to be apportioned on the basis of turnover is

A) carriage inwards

A) carriage inwards

B) returns outwards

B) returns outwards

C) discount recieved

C) discount recieved

D) carriage outwards

D) carriage outwards

#34. If goods are sent to to branch at 25% on cost, what will be the cost of goods sent to the branch at a selling price of ₦100,000?

A) ₦130,000

A) ₦130,000

B) ₦125,000

B) ₦125,000

C) ₦80,000

C) ₦80,000

D) ₦75,000

D) ₦75,000

#35. Hussaina Enterprises sent goods worth ₦800,000 at cost plus mark-up of 20% to its branchWhat is the cost price of the goods sent to the branch

A) ₦600,000

A) ₦600,000

B) ₦620,000

B) ₦620,000

C) ₦640,000

C) ₦640,000

D) ₦700,000

D) ₦700,000

#36. Hussaina Enterprises sent goods worth ₦800,000 at cost plus mark-up of 20% to its branchDetermine the profit on the goods sent to the branch at profit margin of 25% mark-up

A) ₦150,000

A) ₦150,000

B) ₦160,000

B) ₦160,000

C) ₦170,000

C) ₦170,000

D) ₦180,000

D) ₦180,000

#37. In the absence of a partnership deed, the act stipulates that

A) an amount should be fixed as salary for partners

A) an amount should be fixed as salary for partners

B) interest on partners loan should be 25%

B) interest on partners loan should be 25%

C) interest should not be allowed on partners drawings

C) interest should not be allowed on partners drawings

D) profits and losses should not be shared equally

D) profits and losses should not be shared equally

#38. The profit of a branch is usually credited to the

A) adjustment account

A) adjustment account

B) head office sales

B) head office sales

C) head office goods account

C) head office goods account

D) head office current account

D) head office current account

#39. Where partnership is converted into a limited liability company, current account balances of partners are transferred to a

A) realization account

A) realization account

B) savings account

B) savings account

C) share capital account

C) share capital account

D) capital account

D) capital account

#40. The expenses incurred in purchasing a vehicle is a

A) revenue expenditure

A) revenue expenditure

B) capital expenditure

B) capital expenditure

C) recurrent expenditure

C) recurrent expenditure

D) concurrent expenditure

D) concurrent expenditure

#41. Payment for shares in excess of amount offered gives rise to

A) subscription in advance

A) subscription in advance

B) revenue reserves

B) revenue reserves

C) capital reserves

C) capital reserves

D) calls-in-advance

D) calls-in-advance

#42. The details of the share capital which a company is authorized to issue is contained in the

A) Articles of Association

A) Articles of Association

B) Companies and Allied Matters Act

B) Companies and Allied Matters Act

C) Memorandum of Association

C) Memorandum of Association

D) Share capital certificate

D) Share capital certificate

#43. ₦800,000 worth of ordinary shares of 50k were issued at ₦1 each, payable in full on application. The entry in the cash book would be to

A) credit ₦1,600,000

A) credit ₦1,600,000

B) debit ₦1,600,000

B) debit ₦1,600,000

C) credit ₦1,600,000

C) credit ₦1,600,000

D) debit ₦800,000

D) debit ₦800,000

#44. Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of ₦1.50k. Application and allotment were received for 900,000 shares at 25k each.Determine the amount received on application and allotment

A) ₦224,950

A) ₦224,950

B) ₦225,000

B) ₦225,000

C) ₦324,950

C) ₦324,950

D) ₦325,000

D) ₦325,000

#45. Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of ₦1.50k. Application and allotment were received for 900,000 shares at 25k each.The book value of issued share capital is

A) ₦675,000

A) ₦675,000

B) ₦975,000

B) ₦975,000

C) ₦1,350,000

C) ₦1,350,000

D) ₦1,950,000

D) ₦1,950,000

#46. The account of government into which all monies are received and from which all expenditures are disbursed is the

A) Federation account

A) Federation account

B) Petroleum Technology Development Fund

B) Petroleum Technology Development Fund

C) Central Bank Account

C) Central Bank Account

D) Development fund

D) Development fund

#47. In government accounting, the method used which records on the basis of financial entity with self-balancing books instead of entity of proprietorship is

A) virement

A) virement

B) fund accounting

B) fund accounting

C) consolidated fund

C) consolidated fund

D) financial regulation

D) financial regulation

Finish

Practice other past questions here

Practice other Financial Accounting Past Questions Here