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 131: The accounting convention which states that profit must not be recognized until realized while all losses should be adequately provided for it termed Options:
  A) materiality
  B) objectivity
  C) consistency
  D) conservatism
  Show Answer
  The correct answer is D .
• Question 132:

  Use the information below to answer this question
  ₦
  Total current assets 2000
  Total fixed assets 4000
  Current liabilities 1200
  Drawings 200
  Long term loan 2000

  What is the net working capital?

  Options:
  A) ₦1800
  B) ₦800
  C) ₦2600
  D) ₦600
  Show Answer
  The correct answer is B .
• Question 133: Hussaina Enterprises sent goods worth ₦800,000 at cost plus mark-up of 20% to its branchDetermine the profit on the goods sent to the branch at profit margin of 25% mark-up Options:
  A) ₦150,000
  B) ₦160,000
  C) ₦170,000
  D) ₦180,000
  Show Answer
  The correct answer is D .
• Question 134:

  (i) Meet growth and diversification need.

  (ii) Reach out to particular customers or markets

  (iii) Comply with some regulatory directives

  (iv) Increase employees' income.

  Which of the reasons above do companies consider in establishing branches?

  Options:
  A) i and ii
  B) i, ii and iii
  C) ii, iii and iv
  D) iii and iv
  Show Answer
  The correct answer is A .
• Question 135:

  

  What is the net profit made by department S?

  Options:
  A) ₦3,600
  B) N,3000
  C) ₦2,400
  D) ₦2,000
  Show Answer
  The correct answer is C .
• Question 136: Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches? Options:
  A) cost price
  B) fixed percentage on cost
  C) selling price
  D) invoice price
  Show Answer
  The correct answer is A .
• Question 137: The ordinary shareholders enjoy the following rights except the right to? Options:
  A) vote at annual general meetings
  B) elect the board of directors
  C) participate in additional issues of shares
  D) receive dividends at a preddetermined rate
  Show Answer
  The correct answer is D .
• Question 138: Salaries in arrears is treated in the balance sheet as a Options:
  A) current asset
  B) current liability
  C) fixed asset
  D) long term liability
  Show Answer
  The correct answer is B .
• Question 139: Use the information below to answer questions 43 and 44.

  A company advertised and issued ₦750,000, 12% preference shares of ₦1 each to be issued at ₦1.50 per share. Applications for ₦1,370,000 were received at 30k per share. 70k per share (including premium) was due om allotment while 25k per share was due on each of the remaining two calls. All amounts due were received . Application money for 120,000 shares was refunded to unsuccessful applicants were allotment shares on pro-rata basis.

  The share premium account would be?

  Options:
  A) credited with application and allotment ₦187, 500
  B) debited with appllication and allotment ₦375,000
  C) credited with application and allotment ₦375, 000
  D) debited with application and allotment ₦187, 500
  Show Answer
  The correct answer is C .
• Question 140:

  Discount allowed is enjoyed by

  Options:
  A) managers
  B) customers
  C) staff of the company
  D) suppliers
  Show Answer
  The correct answer is B .