Financial Accounting Past Questions v3 (JAMB/WAEC/NECO); These Financial Accounting questions are for students who are sitting for the following examinations:

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#1. The factory cost of producing goods is made up of Options

A) prime cost and factory overhead

A) prime cost and factory overhead

B) prime cost and office overhead

B) prime cost and office overhead

C) raw materials consumed and fixed cost

C) raw materials consumed and fixed cost

D) Raw materials and administrative overhead

D) Raw materials and administrative overhead

#2. Interest on a partner's drawings is debited to the Options

A) Partners current account and credited to the profit and loss appropriation account

A) Partners current account and credited to the profit and loss appropriation account

B) profit and loss appropriation account and credited to the partner's current account

B) profit and loss appropriation account and credited to the partner's current account

C) profit and loss account and credited to the partner's current account

C) profit and loss account and credited to the partner's current account

D) Partner's current account and credited to the profit and loss account

D) Partner's current account and credited to the profit and loss account

#3. Equity shareholders' fund is Options

A) ₦133 000

A) ₦133 000

B) ₦120 000

B) ₦120 000

C) ₦113 000

C) ₦113 000

D) ₦100 000

D) ₦100 000

#4. If a 10% dividend is approved, what is the dividend payable to ordinary shareholders? Options

A) ₦13 000

A) ₦13 000

B) ₦11 300

B) ₦11 300

C) ₦10 000

C) ₦10 000

D) ₦8 000

D) ₦8 000

#5. A charitable club has the following figures: N Subscriptions received in 1991 2 800 Subscriptions unpaid in 1990 300 Subscriptions paid for 1992 150 Subscriptions due 1991 180 How much should be charged to the income and expenditure of this club as subscription for 1991? Options

A) ₦2 530

A) ₦2 530

B) ₦2 680

B) ₦2 680

C) ₦2 830

C) ₦2 830

D) ₦2 980

D) ₦2 980

#6. Trade creditors account was maintained at 25% of the capital. What was the balance in the trade creditors account as at 31/12/92? Options

A) ₦29 800

A) ₦29 800

B) ₦29 500

B) ₦29 500

C) ₦29 400

C) ₦29 400

D) ₦29 000

D) ₦29 000

#7. What was the balance showed wages, ₦2 500 and a note stated that ₦500 wages were due but unpaid when preparing final accounts and loss account with Options

A) ₦3 000 and show wages accrued ₦500 in the balance sheet

A) ₦3 000 and show wages accrued ₦500 in the balance sheet

B) ₦2 000 and show wages accrued ₦500 in the balance sheet

B) ₦2 000 and show wages accrued ₦500 in the balance sheet

C) ₦3 000 and show wages perpaid ₦500 in the balance sheet

C) ₦3 000 and show wages perpaid ₦500 in the balance sheet

D) ₦2000 and show wages paid in advance ₦500 in the balace sheet

D) ₦2000 and show wages paid in advance ₦500 in the balace sheet

#8. The trial balance showed wages, ₦2 500 and a note stated that ₦500 wages, were due but unpaid when preparing final accounts and loss account with Options

A) ₦3000 and show wages accrued ₦500 in the balance sheet in the balance sheet

A) ₦3000 and show wages accrued ₦500 in the balance sheet in the balance sheet

B) ₦2 000 and show wages accured ₦500 in the balance sheet

B) ₦2 000 and show wages accured ₦500 in the balance sheet

C) ₦3000 and show wages prepaid ₦500 in the balance sheet

C) ₦3000 and show wages prepaid ₦500 in the balance sheet

D) ₦2000 and show wages paid in advance ₦500 in the balance sheet

D) ₦2000 and show wages paid in advance ₦500 in the balance sheet

#9. which of the following factors has aided the development of accounting? Options

A) The emergence of nation states

A) The emergence of nation states

B) The discovery of mineral resources in commercial quantity

B) The discovery of mineral resources in commercial quantity

C) the growth in size of businesses and separation of ownership and management

C) the growth in size of businesses and separation of ownership and management

D) the development and management of sophisticated monetary system

D) the development and management of sophisticated monetary system

#10. Which of the following concept stipulates that accounting profit is the difference between revenue and expenses? Options

A) Accrual concept

A) Accrual concept

B) Conservatism concept

B) Conservatism concept

C) Prudence concept

C) Prudence concept

D) Materiality concept

D) Materiality concept

#11. An effective accounting system should provide information Options

A) on new product and methods

A) on new product and methods

B) for cutomer feed back and requirement

B) for cutomer feed back and requirement

C) on internal and external reporting for managers and third parties

C) on internal and external reporting for managers and third parties

D) for promoters, directors, labour union and distributors

D) for promoters, directors, labour union and distributors

#12. Which of the following accounting records are source documents? Options

A) Journal and ledgers

A) Journal and ledgers

B) Sales invoice and cash book

B) Sales invoice and cash book

C) Cash book and debit note

C) Cash book and debit note

D) sales invoice and debit note

D) sales invoice and debit note

#13. Given: Motor van, ₦3,600, Premises, ₦5,000; Loan from R. Nwaeke, ₦1,000; Cash at bank; ₦1,650; stock of goods ₦4,800; Creditors, ₦2,560; Cash in hand, ₦250 and debtors ₦6,910. calculate the capital figure. Options

A) ₦19,650

A) ₦19,650

B) ₦18,650

B) ₦18,650

C) ₦17,850

C) ₦17,850

D) N₦16,850

D) N₦16,850

#14. Which of the following transaction is BEST recorded in the general journal? Options

A) Payment of rent with cheque

A) Payment of rent with cheque

B) Purchase of stock with cash

B) Purchase of stock with cash

C) Purchase of an asset on credit terms

C) Purchase of an asset on credit terms

D) Transfer of cash from head office branch

D) Transfer of cash from head office branch

#15. Diamond Ringo business was started when Mr. Diamond brought in a cheque of ₦500,000, which was paid into the bank account. Which of the following entries properly records the transaction? Options

A) Cash account was credited with ₦500,000 and capital account was debited with ₦500,000

A) Cash account was credited with ₦500,000 and capital account was debited with ₦500,000

B) Bank account was debited with ₦500,000 and capital account was credited with ₦500,000

B) Bank account was debited with ₦500,000 and capital account was credited with ₦500,000

C) Bank account was accredited with ₦500,000

C) Bank account was accredited with ₦500,000

D) Mr. diamond acount was debited with ₦500,000 and the cheque account was credited with ₦500,000

D) Mr. diamond acount was debited with ₦500,000 and the cheque account was credited with ₦500,000

#16. One major advantage of ledger is that it Options

A) is a book of original entry

A) is a book of original entry

B) is only accessible to share holders during liquidation

B) is only accessible to share holders during liquidation

C) removes the need for preparing a balance sheet after each transaction

C) removes the need for preparing a balance sheet after each transaction

D) can be used by any type of business

D) can be used by any type of business

#17. A trail balance is usually prepared by an accountant from account balances in the ledger for the purpose of Options

A) classifying accounts in the ledger

A) classifying accounts in the ledger

B) testing arithmetical accuracies of the ledger account balances

B) testing arithmetical accuracies of the ledger account balances

C) identifying the balance sheet items

C) identifying the balance sheet items

D) providing a basis for establishing the accountant's competence

D) providing a basis for establishing the accountant's competence

#18. What are the advantages of an imprest petty cash book? I cheques can be drawn easily II A cheque on the use of cash III Liability of the petty cashier is limited to the value of petty cash IV Loses through the petty cashier can be minimized Options

A) I, II and III only

A) I, II and III only

B) I, II and IV only

B) I, II and IV only

C) I, III and IV only

C) I, III and IV only

D) II, III and IV only

D) II, III and IV only

#19. Bola, UTC's regular customer, owed ₦1,00 on account of a radio bought. If he sent in a cheque for ₦1,500, UTC would send him a Options

A) credit note

A) credit note

B) debit note

B) debit note

C) journal voucher

C) journal voucher

D) way bill

D) way bill

#20. A payment of cash of ₦20 to John was entered on the receipt side of the cash book in error and credited to John's account. Which of the following journal entry can be used to correct the error? Options

A) John: ₦40 Dr, cash: ₦40 Cr

A) John: ₦40 Dr, cash: ₦40 Cr

B) Cash: ₦40 Dr, John: ₦40 Cr

B) Cash: ₦40 Dr, John: ₦40 Cr

C) John: ₦20 Dr, cash: ₦20 Cr

C) John: ₦20 Dr, cash: ₦20 Cr

D) Cash: ₦20 Dr, John: ₦20 Cr

D) Cash: ₦20 Dr, John: ₦20 Cr

#21. The following represent extracts from the trading account of a retail outlet for a given month: Opening stock ₦2,400 Closing stock ₦6,400 Other expenses ₦2,000 Sales ₦11,000 Profit ₦900 What is the purchase figure for the month? Options

A) ₦13,000

A) ₦13,000

B) ₦12,100

B) ₦12,100

C) ₦12,000

C) ₦12,000

D) ₦11,200

D) ₦11,200

#22. Adama's bank account showed an overdraft of ₦600 on 31st march. On going through the account, it was discovered that the ₦1,080 paid into the account on 29th March had not been credited. what should be the balance in Adama's cash accounts? Options

A) ₦1,680 Dr

A) ₦1,680 Dr

B) ₦1,080 Cr

B) ₦1,080 Cr

C) ₦600 Dr

C) ₦600 Dr

D) ₦480 Cr

D) ₦480 Cr

#23. Why are adjustments in the profit and loss account necessary? Options

A) To cover some expenses of the following year

A) To cover some expenses of the following year

B) To ascertain the actual expenses incurred and income earned during the year

B) To ascertain the actual expenses incurred and income earned during the year

C) To show the provision made during the year

C) To show the provision made during the year

D) To show the total expenses paid and income received during the year

D) To show the total expenses paid and income received during the year

#24. Sales ledger control account contains the total amount in respect of Options

A) creditors

A) creditors

B) debtors

B) debtors

C) investors

C) investors

D) shareholders

D) shareholders

#25. The purchase ledger control account of a company had an opening balance of ₦45,600 credit and closing balance of ₦72,600 credit. The company made payments of 437,000 to credit suppliers during the period: and had discount received of ₦18,600 on this account. What were the credit purchase for the period? Options

A) ₦509,600

A) ₦509,600

B) ₦482,600

B) ₦482,600

C) ₦428,600

C) ₦428,600

D) ₦418,400

D) ₦418,400

#26. The starting point for the production of accounts from incomplete records is to Options

A) ascertain the total sales

A) ascertain the total sales

B) compute the opening stock of goods sold

B) compute the opening stock of goods sold

C) verify the total purchase

C) verify the total purchase

D) prepare an opening statement of affairs

D) prepare an opening statement of affairs

#27. I. A retailer when fixing his selling price adds one-quarter to the cost of the article II. The expenses of the retailer is 10% of his sales III. The total sales is ₦23,000 IV. he turned over his stock five times in the year. Compute the average amount of stock in hand at cost price Options

A) ₦3,860

A) ₦3,860

B) ₦3,806

B) ₦3,806

C) ₦3,680

C) ₦3,680

D) ₦3,086

D) ₦3,086

#28. I. A retailer when fixing his selling price adds one-quarter to the cost of the article II. The expenses of the retailer is 10% of his sales III. The total sales is ₦23,000 IV. he turned over his stock five times in the year. The net profit for the year is Options

A) ₦5,750

A) ₦5,750

B) ₦5,650

B) ₦5,650

C) ₦3,200

C) ₦3,200

D) ₦2,300

D) ₦2,300

#29. Given: Prime cost ₦220,000 Factory cost ₦32,000 Work in progress at beginning ₦25,000 Work in progress at close ₦19,000 Administrative expenses ₦21,000 Determine the production cost Options

A) ₦296,000

A) ₦296,000

B) ₦277,000

B) ₦277,000

C) ₦258,000

C) ₦258,000

D) ₦246,000

D) ₦246,000

#30. The factory cost of producing goods is made up of Options

A) prime cost and factory overhead

A) prime cost and factory overhead

B) prime cost and office overhead

B) prime cost and office overhead

C) raw materials consumed and fixed cost

C) raw materials consumed and fixed cost

D) Raw materials and administrative overhead

D) Raw materials and administrative overhead

#31. The following information is provided for amusa company limited , a manufacturer Prime cost ₦999,000Manufacturing overhead ₦132,000Closing work in progress ₦75,000values of finished goods transferred to thetrading account ₦1,116,000If including in the manufacturing overhead were rents of ₦5,000 paid in advance, what is the opening work in progress for the period? Options

A) ₦85,000

A) ₦85,000

B) ₦80,000

B) ₦80,000

C) ₦70,000

C) ₦70,000

D) ₦65,000

D) ₦65,000

#32. Subscription in arrears are Options

A) Credited to the income and expenditure account and shown as a liability in the balance sheet

A) Credited to the income and expenditure account and shown as a liability in the balance sheet

B) debited to the income and expenditure account and shown as an asset in the balance sheet

B) debited to the income and expenditure account and shown as an asset in the balance sheet

C) credited to the income and expenditure account and shown as a liability in the balance sheet

C) credited to the income and expenditure account and shown as a liability in the balance sheet

D) debited to the income and expenditure account and shown as a liability in the balance sheet

D) debited to the income and expenditure account and shown as a liability in the balance sheet

#33. Where a non-profit making organization prepares the account using accruals basis of reporting, the statement showing how well the organization is doing is the Options

A) appropriation account

A) appropriation account

B) balance sheet

B) balance sheet

C) income and expenditure account

C) income and expenditure account

D) receipts and payment account

D) receipts and payment account

#34. A member of a club paid ₦1,000 as is subscription for 1993 and ₦1,200 as subscription for 1992. If the financial year of the society ended on 31st December 1993, the ₦1,200 subscription will be treated in the balance sheet as Options

A) current asset

A) current asset

B) current liability

B) current liability

C) capital

C) capital

D) profit

D) profit

#35. Which of the following is a strong feature of partnership? Options

A) The life of the partnership is generally assumed to be indefinite

A) The life of the partnership is generally assumed to be indefinite

B) The owners are liable personally for all debts of the business

B) The owners are liable personally for all debts of the business

C) The transfer of ownership interest is frequent and easy to accomplish

C) The transfer of ownership interest is frequent and easy to accomplish

D) The partnership is complex to form because of many legal and reporting requirements

D) The partnership is complex to form because of many legal and reporting requirements

#36. Interest on a partner's drawings is debited to the Options

A) Partners current account and credited to the profit and loss appropriation account

A) Partners current account and credited to the profit and loss appropriation account

B) profit and loss appropriation account and credited to the partner's current account

B) profit and loss appropriation account and credited to the partner's current account

C) profit and loss account and credited to the partner's current account

C) profit and loss account and credited to the partner's current account

D) Partner's current account and credited to the profit and loss account

D) Partner's current account and credited to the profit and loss account

#37. A partnership on admitting a new member, revalued the business' land and building from ₦30,000 to ₦70,00. The difference of ₦40,000 should be Options

A) credited to land and building account

A) credited to land and building account

B) debited to asset revaluation account

B) debited to asset revaluation account

C) credited to asset revaluation account

C) credited to asset revaluation account

D) credited to profit and loss appropriation account

D) credited to profit and loss appropriation account

#38. Halidu and Hamed are business partners with ₦30,000 and ₦20,000 capital respectively. At the end of the financial year, a profit of ₦12,000, which included Halidu's salary of ₦3,000 was made. Hamed's share of the profit should be Options

A) credited to partners' capital account

A) credited to partners' capital account

B) credited to partners' current account

B) credited to partners' current account

C) credited to appropriation account

C) credited to appropriation account

D) debited to partners' drawing account

D) debited to partners' drawing account

#39. The conversion of a partners business into a limited liability company affords the Options

A) general partners the chance of enjoying the limited laibility protection

A) general partners the chance of enjoying the limited laibility protection

B) limited liability partners the chance of enjoying the limited liability protecction

B) limited liability partners the chance of enjoying the limited liability protecction

C) Creditors the chance of enjoying the limited liabiity protection

C) Creditors the chance of enjoying the limited liabiity protection

D) debtors the chance of enjoying the limited liability protection

D) debtors the chance of enjoying the limited liability protection

#40. Which of the following ratios gives an idea of the liquidity of a firm? Options

A) Turnover ratio

A) Turnover ratio

B) Quick ratio

B) Quick ratio

C) Debit ratio

C) Debit ratio

D) Dividend yield

D) Dividend yield

#41. A total of 400,000 shares of ₦1 each are to be issued by Sariki company Ltd at a price of ₦1.20 per share. Application were received for 600,000 shares out of which 100,000 were dishonored. If the available share were distributed pro-rata, what refund will be due a subscriber who applied for 5,000 shares? Options

A) ₦1,000

A) ₦1,000

B) ₦1,200

B) ₦1,200

C) ₦4,800

C) ₦4,800

D) ₦6,000

D) ₦6,000

#42. The measure of a company's ability to pays its debts quickly is called Options

A) Current ratio

A) Current ratio

B) turnover ratio

B) turnover ratio

C) acid test ratio

C) acid test ratio

D) return of investment

D) return of investment

#43. Departmental accounts are maintained to ascertain the Options

A) profits of the entire organization

A) profits of the entire organization

B) contribution of each department

B) contribution of each department

C) expenses of each department

C) expenses of each department

D) sales of each department

D) sales of each department

#44. The Asa branch of Emene company Ltd, made a sales of ₦549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were ₦34,400 and there were no discrepancies, what should be the profit of the branch for the period? Options

A) ₦6,500

A) ₦6,500

B) ₦64,600

B) ₦64,600

C) ₦85,380

C) ₦85,380

D) ₦514,600

D) ₦514,600

#45. Which of the following statement is correct about the head office current account and the branch current account? Options

A) Both always have debit balances

A) Both always have debit balances

B) both always have credit balances

B) both always have credit balances

C) the head office current account has a credit balance while the branch current account has a debit balance

C) the head office current account has a credit balance while the branch current account has a debit balance

D) the head office current account has a debit balance while the branch current account has a credit balance

D) the head office current account has a debit balance while the branch current account has a credit balance

#46. Which of the following are sources of revenue to state government in Nigeria? I Statutory allocation II Fines from customary courts III Petroleum tax IV Income tax IV Options

A) I and II only

A) I and II only

B) II and III

B) II and III

C) I and IV

C) I and IV

D) III and IV

D) III and IV

#47. Eko Local Government expenditure Hospital building ---------------------- ₦200,000 Drugs ---------------------------------- ₦180,000 Hospital beds and mattresses ------------ ₦40,000 Doctors' and nurses' salaries ---------- ₦120,000 Administrative expenses ----------------- ₦50,000 Recurrent expenditure is Options

A) ₦390,000

A) ₦390,000

B) ₦360,000

B) ₦360,000

C) ₦350,000

C) ₦350,000

D) ₦170,000

D) ₦170,000

Finish

Practice other past questions here

Practice other Financial Accounting Past Questions Here