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 701:

  Retained profits is an example of

  Options:
  A) Revenue reserve
  B) Capital reserves
  C) General reserves
  D) Loan capital
  Show Answer
  The correct answer is A .
• Question 702:

  Shares that are offered to existing shareholders at a price is called

  Options:
  A) par
  B) premium
  C) right issue
  D) bonus issue
  Show Answer
  The correct answer is C .
• Question 703: The objective of allocating all costs to producer is to? Options:
  A) produce a scientifically accurate cost
  B) avoid unallocated overhead and compute total accounts
  C) co-odinate the cost and financial accounts
  D) compute the contribution of the product to the final profit
  Show Answer
  The correct answer is D .
• Question 704:

  In the absence of a partnership agreement, a loan given to the partnership by a partner attracts interest of

  Options:
  A) 7 $\frac{1}{2}$ %
  B) 5%
  C) 15%
  D) 10%
  Show Answer
  The correct answer is B .
• Question 705:

  Use the information below to answer question .

  .........................31 Dec. 05........31 Dec. 06

  Total fixed assets.........₦7 800............₦6 600

  Total current assets.......₦12 100............₦17800

  Total current liabilities..₦4 700............₦3 800

  Drawings for 2006 is ₦5 200.

  What is the net profit for 2006?

  Options:
  A) ₦19 000
  B) ₦16 000
  C) ₦12 600
  D) ₦10 600
  Show Answer
  The correct answer is D .
• Question 706:

  	₦		₦
  Stock 1/1	20,000	Net sales	370,000
  Add purchases	250,000
  Cost of goods available for sale	270,000
  Less stock 31/12	40,000
  Cost of goods sold			230,000
  Rent expenses	35,000

  Use the information above to answer the question:

  Find the gross profit.

  Options:
  A) ₦370,000
  B) ₦230,000
  C) ₦150,000
  D) ₦140,000
  Show Answer
  The correct answer is D .
• Question 707: An effective accounting system should provide information Options:
  A) on new product and methods
  B) for cutomer feed back and requirement
  C) on internal and external reporting for managers and third parties
  D) for promoters, directors, labour union and distributors
  Show Answer
  The correct answer is C .
• Question 708:

  Purchasers - #44,880

  Sales - #85,850

  Trade creditors - #12,250

  Trade debtors - #24,000

  Accrued expenses - # 350

  Prepaid expenses - # 700

  Stock 1/1/2006 - #25,120

  Stock 31/12/2006 - #27,840Determine the number of times stock was turned over during the period to the nearest figure

  Options:
  A) 1
  B) 2
  C) 3
  D) 4
  Show Answer
  The correct answer is B .
• Question 709:

  Use the information below to answer question .

  Capital.....................N?

  Profit and loss.............₦3500

  Current assets..............N?

  Current liabilities.........₦2000

  Fixed assets................₦11000

  The company maintains a current ratio of 3:1.

  The capital balance is?

  Options:
  A) ₦95 00
  B) ₦12 500
  C) 11 500
  D) 10 00
  Show Answer
  The correct answer is B .
• Question 710: The directors' salaries paid are items of? Options:
  A) current liabilities
  B) profit and loss account
  C) trading account
  D) current account
  Show Answer
  The correct answer is B .