Financial Accounting Past Questions v5 (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 v5 (JAMB/WAEC/NECO)

Results

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#1. The books of accounts are opened by means of a

A) sales journal

A) sales journal

B) principle journal

B) principle journal

C) purchases journal

C) purchases journal

D) return inwards journal

D) return inwards journal

E) return outwards journal

E) return outwards journal

#2. Which of the following is true of trade discounts?

A) they are recorded in the ledger only

A) they are recorded in the ledger only

B) they are not different from cash discount

B) they are not different from cash discount

C) they are recorded in journal onlu

C) they are recorded in journal onlu

D) they are recorded in ledgers and journals

D) they are recorded in ledgers and journals

E) each discount receives double entries

E) each discount receives double entries

#3. Return inwards was understated. The effect is that

A) amount of goods available was understand

A) amount of goods available was understand

B) cost of sales was understated

B) cost of sales was understated

C) amount of purchase returns was understated

C) amount of purchase returns was understated

D) amount of sales was understated

D) amount of sales was understated

E) amount of sales returns was understated

E) amount of sales returns was understated

#4. Which of the following is not contained in the sales ledger control account?

A) receipts from debtors

A) receipts from debtors

B) returns inwards

B) returns inwards

C) returns outwards

C) returns outwards

D) dishonoured cheque

D) dishonoured cheque

E) discunt allowed

E) discunt allowed

#5. Which of the following is a credit item on an income and expenditure account?

A) bar expenses

A) bar expenses

B) electricity

B) electricity

C) salaries

C) salaries

D) subscription

D) subscription

E) rates

E) rates

#6. Payment for future services are

A) prepayment

A) prepayment

B) deposit

B) deposit

C) accruals

C) accruals

D) invesment

D) invesment

E) advances

E) advances

#7. An excess of the value of the assets over the purchases consideration for acquisition of business is credited to

A) general reserve

A) general reserve

B) capital reserve

B) capital reserve

C) goodwill

C) goodwill

D) current asset

D) current asset

E) share capital

E) share capital

#8. shares are sold at less than nominal value. They are issued at a

A) profit

A) profit

B) loss

B) loss

C) discount

C) discount

D) premium

D) premium

E) par

E) par

#9. A share is under-subscribed when

A) it is offered for sale at less than the nominal value

A) it is offered for sale at less than the nominal value

B) it is offered for sale at nominal value

B) it is offered for sale at nominal value

C) the number of shares applied for is less than the offer

C) the number of shares applied for is less than the offer

D) it is offered for sale at more thn norminal value

D) it is offered for sale at more thn norminal value

E) the number of shares applied for is more than the offer

E) the number of shares applied for is more than the offer

#10. A trial balance is a proof of accuracy of

A) transactions

A) transactions

B) final account

B) final account

C) double entry in the ledger

C) double entry in the ledger

D) trading account

D) trading account

E) balance sheet

E) balance sheet

#11. The term bad debts means debts

A) recorded in wrong accout

A) recorded in wrong accout

B) owed by an employee

B) owed by an employee

C) paid with fake currency

C) paid with fake currency

D) that cannot be collected

D) that cannot be collected

E) owed by a supplier

E) owed by a supplier

#12. Goodwill is

A) a current asset

A) a current asset

B) a current liability

B) a current liability

C) a long term liability

C) a long term liability

D) a fictitious asset

D) a fictitious asset

E) an intangible asset

E) an intangible asset

#13. Purchases in accounting refers to goods bought for

A) repairs

A) repairs

B) owner's use

B) owner's use

C) resale

C) resale

D) decorating offices

D) decorating offices

E) permanent use

E) permanent use

#14. 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

#15. 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

E) debit bank account, credit drawings account

E) debit bank account, credit drawings account

#16. 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

A debit cash balance of ₦26,900 was brought downC) debit cash account ₦2,600, credit suspense account ₦2,600

A debit cash balance of ₦26,900 was brought downC) 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

#17. 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

#18. 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

#19. 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

#20. 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

#21. 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

#22. 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

#23. 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

#24. 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

#25. 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

E) ₦800

E) ₦800

#26. 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

E) travelling expenses of a partner

E) travelling expenses of a partner

#27. 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

A) ₦3,460

A) ₦3,460

B) ₦5,620

B) ₦5,620

C) ₦14,170

C) ₦14,170

D) ₦16,330

D) ₦16,330

E) ₦18,490

E) ₦18,490

#28. 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

#29. 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

#30. 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

#31. 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

E) money in excess of capital agreed to subscribe is to attract an interest of 5% per annum

E) money in excess of capital agreed to subscribe is to attract an interest of 5% per annum

#32. 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

#33. 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

#34. 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

#35. 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 net profit for that year, assuming a gross profit of ₦3,650 was made?

A) ₦2,920

A) ₦2,920

B) ₦3,240

B) ₦3,240

C) ₦3,330

C) ₦3,330

D) ₦5,340

D) ₦5,340

E) ₦5,440

E) ₦5,440

#36. 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

#37. 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

#38. 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) ₦625

E) ₦625

#39. 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

#40. 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

Finish

Practice other past questions here

Practice other Financial Accounting Past Questions Here