Accounts Exam Past Questions and Answers | JAMB, WAEC and NECO

Accounts, also called Principles of Accounts by some exam boards, focuses on the organized and thorough recording of a business's financial transactions.

• Question 71: An accounting ratio that considers only quick assets to determine the short-term safety margin of a firm is the? Options:
  A) fixed assets ratio
  B) capital gearing ratio
  C) current assets ratio
  D) acid test ratio
  Show Answer
  The correct answer is D .
• Question 72:

  Which of the following accounting conventions suggests that accountants should use a method of valuation that understates rather than overstates results?

  Options:
  A) monetary
  B) cost
  C) conservatism
  D) historical
  Show Answer
  The correct answer is C .
• Question 73: A major cause of discrepancy between bank statement and the cash book that overstates the bank statement balance is the? Options:
  A) commission paid
  B) interest received
  C) direct payment
  D) direct withdrawal
  Show Answer
  The correct answer is C .
• Question 74: A source document is used for verifying the? Options:
  A) amount due to creditors
  B) actual cost of an asset
  C) selling price of goods
  D) amount due from debtors
  Show Answer
  The correct answer is C .
• Question 75: The capital of a sole trader can be increased by Options:
  A) debiting the capital account
  B) crediting the capital account
  C) debiting the cash account
  D) crediting the cash account
  Show Answer
  The correct answer is C .
• Question 76:

  What act generally includes completing unfinished partnership business, collecting and paying debts, collecting partnership assets to be turned into cash and taking inventory?

  Options:
  A) Formation
  B) dissolution
  C) winding up
  D) termination
  Show Answer
  The correct answer is B .
• Question 77:

  The difference between double entry and single entry is

  Options:
  A) double entry is based on the dual concept while single entry is not based on dual concept
  B) double entry is an account while single entry is not an account
  C) double entry keeps personal account while single does not
  D) double entry is useful for business enterprise while single entry is not
  Show Answer
  The correct answer is A .
• Question 78: Provision for bad and double debts in companies final accounts is treated in? Options:
  A) trading account
  B) profit and loss account
  C) fund flow statement
  D) cash flow statement
  Show Answer
  The correct answer is B .
• Question 79:

  The principle of double entry developed from the axioms of accounting equation is given as

  Options:
  A) Liabilties + Equity = Net assets
  B) Assets + Equity = Liabilities
  C) Liabilities + Equity = Assets
  D) Assets + Liability = Equity
  Show Answer
  The correct answer is C .
• Question 80:

  Branch stock adjustment account is prepared at?

  Options:
  A) Cost price
  B) new price
  C) invoice price
  D) normal price
  Show Answer
  The correct answer is C .