Financial Accounting Past Questions v4 (JAMB/WAEC/NECO); These Financial Accounting questions are for students who are sitting for the following examinations:

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• NABTEB GCE

Results

GOOD JOB.

TRY AGAIN.

#1. A suspense account is used to

A) agree the trial balance

A) agree the trial balance

B) recoord sales

B) recoord sales

C) record purchases

C) record purchases

D) correct errors

D) correct errors

E) prepare the balance sheet

E) prepare the balance sheet

#2. To correct an error, the purchases account was debited while Suspense account was credited. Which of the following was the cause of the error?

A) undercasting of purchase

A) undercasting of purchase

B) overcasting of purchases

B) overcasting of purchases

C) original entry

C) original entry

D) transportation of returns outwards

D) transportation of returns outwards

E) omission of creditor's balance

E) omission of creditor's balance

#3. Subscription in advance is treated in the Balance sheet of non-profit making organizations as

A) current asset

A) current asset

B) fixed asset

B) fixed asset

C) current liability

C) current liability

D) accumulated fund

D) accumulated fund

E) goodwill

E) goodwill

#4. A sales day book is used to record

A) cash sales of stock

A) cash sales of stock

B) credit sales of stock

B) credit sales of stock

C) cash and credit sales of stock

C) cash and credit sales of stock

D) cash sales of fixed assets

D) cash sales of fixed assets

E) credit sales of fixed assets

E) credit sales of fixed assets

#5. Which of the following is not a capital expenditure to a local government?

A) beds

A) beds

B) theatre equipment

B) theatre equipment

C) incubators

C) incubators

D) x-ray machine

D) x-ray machine

E) drugs

E) drugs

#6. A Receipt and Payments Account reveals

A) net profit

A) net profit

B) surplus

B) surplus

C) cash in hand

C) cash in hand

D) gross profit

D) gross profit

E) net loss

E) net loss

#7. An example of appropriation of profit in a company is

A) salaries

A) salaries

B) rent income

B) rent income

C) debenture interest

C) debenture interest

D) director's remuneration

D) director's remuneration

E) dividend

E) dividend

#8. In a partnership goodwill is recognized when

A) a new partner is admitted

A) a new partner is admitted

B) a partner is dormant

B) a partner is dormant

C) the business is making huge profit

C) the business is making huge profit

D) the business has good customer relations

D) the business has good customer relations

E) it is a limited partnership

E) it is a limited partnership

#9. Which of the following is a normal account?

A) Machinery

A) Machinery

B) Debtors

B) Debtors

C) Creditors

C) Creditors

D) Salaries

D) Salaries

E) Goodwill

E) Goodwill

#10. Use the following information to answer this questionAn asset was bought on 1st January, 1992 for ₦20,000. Depreciation was provided for annually at 20% on cost. It was sold for ₦7,000 on 1st July, 1995.Accumulated depreciation at the time of sale was

A) ₦16,000

A) ₦16,000

B) ₦14,000

B) ₦14,000

C) ₦12,000

C) ₦12,000

D) ₦8,000

D) ₦8,000

E) ₦6,000

E) ₦6,000

#11. Use the following information to answer this questionAn asset was bought on 1st January, 1992 for ₦20,000. Depreciation was provided for annually at 20% on cost. It was sold for ₦7,000 on 1st July, 1995.The profit on sale was

A) ₦8.00

A) ₦8.00

B) ₦7,000

B) ₦7,000

C) ₦6,000

C) ₦6,000

D) ₦5,000

D) ₦5,000

E) ₦1,000

E) ₦1,000

#12. In Manufacturing Account, prime cost plus factory overhead is known as

A) conversion cost

A) conversion cost

B) cost of raw materials consumed

B) cost of raw materials consumed

C) total cost

C) total cost

D) production cost

D) production cost

E) cost of work in progress

E) cost of work in progress

#13. Which of the following is an advantage of the impurest system?

A) making hig profits in the business

A) making hig profits in the business

B) Rewarding the imprest holder

B) Rewarding the imprest holder

C) Easy prearation of the final accounts

C) Easy prearation of the final accounts

D) Meeting small items of expenditure

D) Meeting small items of expenditure

E) Enabling the Trial Balance to agree

E) Enabling the Trial Balance to agree

#14. Where a business is purchased, the full amount of the purchase consideration is credited to

A) Purchase of Business Account

A) Purchase of Business Account

B) Creditor's Account

B) Creditor's Account

C) Vendor's Account

C) Vendor's Account

D) Purchaser's Account

D) Purchaser's Account

E) Debtor's Account

E) Debtor's Account

#15. A financial plan of action expressed in monetary terms is known as

A) imprest

A) imprest

B) consolidated fund

B) consolidated fund

C) warrant

C) warrant

D) budget

D) budget

E) development fund

E) development fund

#16. Which of the following is not a source document for recording sales?

A) Debit note

A) Debit note

B) Credit note

B) Credit note

C) Receipt

C) Receipt

D) Sales journal

D) Sales journal

E) Invoice

E) Invoice

#17. Use the following information to answer this question A company charges out goods to a branch at cost plus 25 percent. It invoiced ₦12,00 worth of goodsThe mark-up is

A) ₦15,000

A) ₦15,000

B) ₦9,000

B) ₦9,000

C) ₦4,000

C) ₦4,000

D) ₦3,000

D) ₦3,000

E) ₦2,000

E) ₦2,000

#18. Use the following information to answer this question A company charges out goods to a branch at cost plus 25 percent. It invoiced ₦12,00 worth of goodsThe double entry required for the mark-up is debit Branch

A) Sales Account, credit Branch Adjustment Account

A) Sales Account, credit Branch Adjustment Account

B) Adjustment Accoutnt, credit Branch Stock Account

B) Adjustment Accoutnt, credit Branch Stock Account

C) Stock Account, credit Branch Adjustment Account

C) Stock Account, credit Branch Adjustment Account

D) Adjustment Account, credit Branch Profit and Loss Account

D) Adjustment Account, credit Branch Profit and Loss Account

E) Profit and Lost Account, credit Branch Stock Account

E) Profit and Lost Account, credit Branch Stock Account

#19. A ledger is a

A) book of accounts

A) book of accounts

B) summary of entries

B) summary of entries

C) book of original entry

C) book of original entry

D) double entry posting

D) double entry posting

E) record of credit transactions

E) record of credit transactions

#20. A real account is the account of

A) expenses or losses

A) expenses or losses

B) gains or income

B) gains or income

C) physical tangible items

C) physical tangible items

D) fictitious items

D) fictitious items

E) current liabilities

E) current liabilities

#21. An item is fictitious because it

A) does not exist

A) does not exist

B) is too costly

B) is too costly

C) is worthless

C) is worthless

D) cannot be sold for cash

D) cannot be sold for cash

E) is bought on credit

E) is bought on credit

#22. Which of the following is not a personal account?

A) Bolaji Account

A) Bolaji Account

B) Drawings Account

B) Drawings Account

C) P.Z. Plc Account

C) P.Z. Plc Account

D) Cash Account

D) Cash Account

E) Acada Club Account

E) Acada Club Account

#23. A provision is

A) an expense of business to be paid for in cash

A) an expense of business to be paid for in cash

B) an amount of loss from trading activities

B) an amount of loss from trading activities

C) a loss in value of all business assets

C) a loss in value of all business assets

D) an expense the amount of which is not certain

D) an expense the amount of which is not certain

E) an amount set out of profit for other uses

E) an amount set out of profit for other uses

#24. A cash discount is a

A) Trading Account item

A) Trading Account item

B) Profit and Loss Account item

B) Profit and Loss Account item

C) Appropriation Account item

C) Appropriation Account item

D) Receipts and Payments Account item

D) Receipts and Payments Account item

E) Balance Sheet item.

E) Balance Sheet item.

#25. An expense becomes an accrual because it

A) is due for payment

A) is due for payment

B) is a Profit and Loss Account

B) is a Profit and Loss Account

C) is a Trading Account item

C) is a Trading Account item

D) is to be paid within the next one year

D) is to be paid within the next one year

E) must appear in the balance sheet

E) must appear in the balance sheet

#26. The amount for which a business is sold is known as

A) goodwill

A) goodwill

B) capital reserve

B) capital reserve

C) purchase consideration

C) purchase consideration

D) premium

D) premium

E) equity

E) equity

#27. The person who is responsible for the formation of a company is called the

A) promoter

A) promoter

B) dividend

B) dividend

C) shareholder

C) shareholder

D) director

D) director

E) subscriber

E) subscriber

#28. The amount of a company's profit given to a shareholder is known as

A) premium

A) premium

B) dividend

B) dividend

C) insterst

C) insterst

D) allotment

D) allotment

E) warrant

E) warrant

#29. Which of the following does not belong to the group?

A) Plant and machinery

A) Plant and machinery

B) stock

B) stock

C) goodwill

C) goodwill

D) preliminary expenses

D) preliminary expenses

E) overdraft

E) overdraft

#30. A partner's drawing is debited to

A) profit and loss appropriation account

A) profit and loss appropriation account

B) interest account

B) interest account

C) loan account

C) loan account

D) current account

D) current account

E) trading account

E) trading account

#31. Trade debts amounting to ₦300 were written off. Which of the following would be affected?

A) purchases

A) purchases

B) profit and losses

B) profit and losses

C) creditors

C) creditors

D) sales ledger

D) sales ledger

E) trading account

E) trading account

#32. Debenture is a

A) current asset

A) current asset

B) fixed asset

B) fixed asset

C) long term liability

C) long term liability

D) current liability

D) current liability

E) tangible asset

E) tangible asset

#33. Which of the following is a Revenue Income?

A) the sale proceeds of an old table

A) the sale proceeds of an old table

B) the sale proceeds of shares

B) the sale proceeds of shares

C) loan refund

C) loan refund

D) debt recovered

D) debt recovered

E) the sale proceeds of an old typewriter

E) the sale proceeds of an old typewriter

#34. Which of the following is a fictitious asset?

A) plant and mechinery

A) plant and mechinery

B) prepayment

B) prepayment

C) preliminary expenses

C) preliminary expenses

D) investment

D) investment

E) fictures and fittings

E) fictures and fittings

#35. Income received in advance is shown in the balance sheet as

A) current asset

A) current asset

B) intangible asset

B) intangible asset

C) tangible asset

C) tangible asset

D) long term liabilities

D) long term liabilities

E) current loabilities

E) current loabilities

#36. Gavon. Ltd. failed to record ₦2,000 wages. The error committed is that of

A) omission

A) omission

B) commission

B) commission

C) principle

C) principle

D) compensation

D) compensation

E) original entry

E) original entry

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

A) authorised capital

A) authorised capital

B) norminal capital

B) norminal capital

C) issed capital

C) issed capital

D) owners capital

D) owners capital

E) working capital

E) working capital

#38. Carriage inwards are

A) credited to the trading account

A) credited to the trading account

B) debited to the trading account

B) debited to the trading account

C) credited to the profit account

C) credited to the profit account

D) debited o the profit and loss account

D) debited o the profit and loss account

E) debited to the profit and loss appropriation account

E) debited to the profit and loss appropriation account

#39. Which of the following accounts is not kept by a local government?

A) departmental votes revenue account

A) departmental votes revenue account

B) departmental votes expenditure account

B) departmental votes expenditure account

C) deposit account

C) deposit account

D) advances account

D) advances account

E) profit and loss account

E) profit and loss account

#40. Abdul paid off his indebtedness to John by cash. The accounting entries in Abdul's books are: debt

A) cash account, credit John's account

A) cash account, credit John's account

B) cash account, credit debtors account

B) cash account, credit debtors account

C) John's account, credit cash account

C) John's account, credit cash account

D) John's account, credit bank account

D) John's account, credit bank account

E) Abdul;s account, credit John's account

E) Abdul;s account, credit John's account

Finish

Practice other past questions here

Practice other Financial Accounting Past Questions Here