Financial Accounting Past Questions v9 (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 v9 (JAMB/WAEC/NECO)

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. 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 sales 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

#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. 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

#15. 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

#16. 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

#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 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

#18. 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

#19. 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

#20. 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

#21. 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?

#22. 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

#23. 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.

#24. Use the following information to answer this questionKudi Local Government Council incurred the following expenditure in 1995: N Payment of salaries 140,000 Purchase of drugs for dispensaries 80,000 Purchase of books for Library 30,000 Sinking of wells 70,000 Extension of Council offices 160,000The amount of revenue expenditure for 1995 was

A) ₦26,000

A) ₦26,000

B) ₦230,00

B) ₦230,00

C) ₦220,000

C) ₦220,000

D) ₦160,000

D) ₦160,000

E) 140,000

E) 140,000

#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 item

B) is a Profit and Loss Account item

C) is a Trading Account

C) is a Trading Account

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 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

#28. Which of the following best described the path of a transaction?

A) Source documents to Journal to Ledger

A) Source documents to Journal to Ledger

B) Source documents to Ledger to Journal

B) Source documents to Ledger to Journal

C) Journal to Ledger to source documents

C) Journal to Ledger to source documents

D) Journal to source documents to Ledger

D) Journal to source documents to Ledger

E) Ledger to Joural to source documents

E) Ledger to Joural to source documents

#29. Where there are no proper books of account , the capital at the commencement of a period is ascertained by preparing

A) Total Debtors and Creditors Accounts

A) Total Debtors and Creditors Accounts

B) Bank Reconciliation Statement

B) Bank Reconciliation Statement

C) Statement of Affairs

C) Statement of Affairs

D) Trading, Profit and Loss Accounts

D) Trading, Profit and Loss Accounts

E) Balance Sheet

E) Balance Sheet

#30. Rent receivable is a

A) current asset

A) current asset

B) current liability

B) current liability

C) contingent liability

C) contingent liability

D) ficititous asset

D) ficititous asset

E) provision

E) provision

#31. Which of the following is a factory overhead?

A) carriage on raw materials

A) carriage on raw materials

B) purchase of raw materials

B) purchase of raw materials

C) production wages

C) production wages

D) direct expenses

D) direct expenses

E) depreciation of factory equipment

E) depreciation of factory equipment

#32. Use the following information to answer this questionA business whose assets consisted of stock ₦15,000 and debtors ₦8,000 was bought by issuing 20,000 ordinary shares of ₦1 each at a premium of 20 percent.The purchase consideration was

A) ₦24,000

A) ₦24,000

B) ₦23,000

B) ₦23,000

C) ₦20,000

C) ₦20,000

D) ₦15,000

D) ₦15,000

E) ₦8,000

E) ₦8,000

#33. Use the following information to answer this questionA business whose assets consisted of stock ₦15,000 and debtors ₦8,000 was bought by issuing 20,000 ordinary shares of ₦1 each at a premium of 20 percent.The amount of goodwill was

A) ₦4,000

A) ₦4,000

B) ₦3,000

B) ₦3,000

C) ₦2,000

C) ₦2,000

D) ₦1,6000

D) ₦1,6000

E) ₦1,000

E) ₦1,000

#34. When a share is sold for less than its nominal value, the difference is called

A) discount

A) discount

B) reserve

B) reserve

C) premium

C) premium

D) loss

D) loss

E) goodwill

E) goodwill

#35. Which of the following serves the same purpose as a Trading Account?

A) Branch Adjustment Account

A) Branch Adjustment Account

B) Goods sent to Branch Accout

B) Goods sent to Branch Accout

C) Branch Stock Account

C) Branch Stock Account

D) Branch Debtors Account

D) Branch Debtors Account

E) Branch Returns Account

E) Branch Returns Account

#36. Which of the following is not a revenue receipt?

A) Receipt from sales of goods

A) Receipt from sales of goods

B) Rent from premises sublet

B) Rent from premises sublet

C) Interest on savings account

C) Interest on savings account

D) cash on sale of fixed asset

D) cash on sale of fixed asset

E) Receipt from trade debtors

E) Receipt from trade debtors

#37. In analyzing incomplete records, which of the following should be investigated?

A) the general ledger

A) the general ledger

B) the purchases day book and sales day book

B) the purchases day book and sales day book

C) the nature of trading activities and the basis on which goods are sold

C) the nature of trading activities and the basis on which goods are sold

D) the asset register together with the depreciation schedule

D) the asset register together with the depreciation schedule

#38. Given: N Direct material - 10 000 Direct labour - 5000 Direct expenses - 2000 Factory overhead - 4000 What is the prime cost?

A) ₦21 000

A) ₦21 000

B) ₦17 000

B) ₦17 000

C) ₦15 000

C) ₦15 000

D) ₦6 000

D) ₦6 000

#39. The difference between a trading account and a manufacturing account is that while the manufacturing account

A) has no particular period, the trading account has

A) has no particular period, the trading account has

B) does not consider the cost of goods involved, the trading account does

B) does not consider the cost of goods involved, the trading account does

C) is concerned with the cost of production, the trading account is not

C) is concerned with the cost of production, the trading account is not

D) is not concerned with the stock of raw materials the rading account is

D) is not concerned with the stock of raw materials the rading account is

#40. An income and expenditure account is a summary of

A) all income and expenditure during a period

A) all income and expenditure during a period

B) revenue income and expenditure during a period

B) revenue income and expenditure during a period

C) receipts and payments during a period

C) receipts and payments during a period

D) the trading income a period

D) the trading income a period

Finish

Practice other past questions here

Practice other Financial Accounting Past Questions Here