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 21:

  One of the major features of book keeping is that it

  Options:
  A) is futuristic in nature
  B) accepts responsibility for all wrong postings
  C) provides permanent records for all financial transactions
  D) does not give room for double entry procedure
  Show Answer
  The correct answer is C .
• Question 22:

  Given:

  Cash purchases ..............................₦25000
  Trading creditors............................₦45000
  Opening balance of trade creditors...........₦35000

  Calculate the purchases for the period?

  Options:
  A) ₦80,000
  B) ₦35,000
  C) ₦105,000
  D) ₦70,000
  Show Answer
  The correct answer is D .
• Question 23:

  A credit balance on a receipt and payments account indicates that the non-profit making organization?

  Options:
  A) had more revenues than expenses during the period
  B) did not owe much liabilities during the period
  C) received more cash than it paid out during the period
  D) made more cash payments than it received during the period
  Show Answer
  The correct answer is C .
• Question 24:

  A limited liability company has an authorized share capital of ₦50 million split into 100 million shares 80 million share was offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued

  What is the nominal value of each share?

  Options:
  A) ₦2
  B) ₦0.80
  C) ₦0.60
  D) ₦0.50
  Show Answer
  The correct answer is D .
• Question 25: The receipt whose name appears on a cheque is called a? Options:
  A) payer
  B) drawer
  C) drawee
  D) payee
  Show Answer
  The correct answer is D .
• Question 26:

  Use the following information to answer this question

  Year	₦
  1991 1992 1993 1994	14,000 24,000 10,000 16,000

  It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is

  Options:
  A) 32,000
  B) 16000
  C) 30000
  D) 64,000
  Show Answer
  The correct answer is A .
• Question 27:

  Use the information below to answer the question that follows:

  $\begin{array}{ccc}Creditors& 3,000& 4,000\\ Debtors& \mathrm{\_}\mathrm{\_}\mathrm{\_}& 6,000\\ \text{Cash received from debtors}& \mathrm{\_}\mathrm{\_}\mathrm{\_}& 35,000\\ \text{cash paid to suppliers}& \mathrm{\_}\mathrm{\_}\mathrm{\_}\mathrm{\_}& 25,000\\ \text{Discount allowed}& \mathrm{\_}\mathrm{\_}\mathrm{\_}\mathrm{\_}\mathrm{\_}& 4,000\\ \text{Discount received}& \mathrm{\_}\mathrm{\_}\mathrm{\_}\mathrm{\_}\mathrm{\_}& 4,200\end{array}$

  What is the total purchase for the period?

  Options:
  A) ₦30,200
  B) ₦30,000
  C) ₦25,000
  D) ₦31,200
  Show Answer
  The correct answer is C .
• Question 28: What is the balance of cash with the petty cashier at the end of period 1? Options:
  A) 220
  B) 780
  C) 980
  D) 1780
  Show Answer
  The correct answer is A .
• Question 29:

  (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 30:

  Given Dept A Dept B

  Floor space 40m² 60m²

  Machine hours 1200 1400

  Turnover ₦36 million ₦64 million

  Labour hours 1000 1400

  A joint cost of ₦72 million incurred by the two departments was apportioned ₦30 million to A and ₦42 million to B. the basis used for apportionment must have been

  Options:
  A) labour hours
  B) floor space
  C) turnover
  D) machine hours
  Show Answer
  The correct answer is A .