Financial Accounting Past Questions v30 (JAMB/WAEC/NECO)

Financial Accounting Past Questions v30 (JAMB/WAEC/NECO); These Financial Accounting questions are for students who are sitting for the following examinations:

HAVE YOU USED OUR JAMB TOOL YET? IT PROVIDES YOUR JAMB COMBINATION FOR FREE

• JAMB
• Post-UTME / Post-JAMB
• WAEC
• NECO
• WAEC GCE
• NECO GCE
• NABTEB
• NABTEB GCE

Financial Accounting Past Questions v30 (JAMB/WAEC/NECO)

Results

#1. What is the amount of capital employed?

A) ₦7000

A) ₦7000

B) ₦10000

B) ₦10000

C) ₦22000

C) ₦22000

D) ₦15000

D) ₦15000

#2. Advertising expenses incurred on a product in a business organization should be charged to

A) Sales department

A) Sales department

B) Production department

B) Production department

C) Purchase department

C) Purchase department

D) Administration department

D) Administration department

#3. When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________

A) Price above or below the stipulated price

A) Price above or below the stipulated price

B) Any price but not below the transfer price

B) Any price but not below the transfer price

C) Cost price

C) Cost price

D) A price that is equal to the mark up

D) A price that is equal to the mark up

#4. The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________

A) Accountant general

A) Accountant general

B) Finance minister

B) Finance minister

C) Auditor general

C) Auditor general

D) Permanent secretory

D) Permanent secretory

#5. The amount called in respect of a share but not paid before or on the date fixed for payment is referred to as:

A) Call in advance

A) Call in advance

B) call in arrears

B) call in arrears

C) forfeiture

C) forfeiture

D) shares

D) shares

#6. When goodwill is not retained in the business, the entries in the new partners books will be to debit______________

A) Goodwill account and credit partners capital account

A) Goodwill account and credit partners capital account

B) Cash account and credit goodwill account

B) Cash account and credit goodwill account

C) Goodwill account and credit cash account

C) Goodwill account and credit cash account

D) Partners capital account and credit goodwill account

D) Partners capital account and credit goodwill account

#7. In the head office ledger, the value of goods sent to the branch are____________

A) Debited to the branch current account

A) Debited to the branch current account

B) Debited to the head office current account

B) Debited to the head office current account

C) Credited to the head office current account

C) Credited to the head office current account

D) Credited to the branch current account

D) Credited to the branch current account

#8. If the purchase price exceeds the net assets of a company, the excess amount is debited to________________

A) Cash account

A) Cash account

B) purchase account

B) purchase account

C) goodwill account

C) goodwill account

D) sales account

D) sales account

#9. Gross profit in the branch adjustment account is transferred to the branch____________

A) Income and expenditure account

A) Income and expenditure account

B) profit and loss account

B) profit and loss account

C) receipt and payment account

C) receipt and payment account

D) trading account

D) trading account

#10. Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?

A) 1 : 1

A) 1 : 1

B) 3 : 6

B) 3 : 6

C) 2 : 1

C) 2 : 1

D) 2 : 6

D) 2 : 6

#11. Calls in advance are treated in the balance sheet as_______

A) Current asset

A) Current asset

B) Fixed asset

B) Fixed asset

C) Current liability

C) Current liability

D) Fixed liability

D) Fixed liability

#12. Why are adjustments in the profit and loss account necessary?

A) To cover some expenses of the following year

A) To cover some expenses of the following year

B) To show the provisions made during the year

B) To show the provisions made during the year

C) To show the total expenses paid and income received during the year

C) To show the total expenses paid and income received during the year

D) To ascertain the actual expenses incurred and income earned during the year

D) To ascertain the actual expenses incurred and income earned during the year

#13. Which of the following is not a type of branch?

A) Dependent branch

A) Dependent branch

B) foreign branch

B) foreign branch

C) independent branch

C) independent branch

D) single branch

D) single branch

#14. In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________

A) Debit entry

A) Debit entry

B) Contra entry

B) Contra entry

C) Credit entry

C) Credit entry

D) Reversal entry

D) Reversal entry

#15. In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________

A) Debit entry

A) Debit entry

B) Contra entry

B) Contra entry

C) Credit entry

C) Credit entry

D) Reversal entry

D) Reversal entry

#16. Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________

A) Partners salaries

A) Partners salaries

B) Interest on capital

B) Interest on capital

C) Interest on loans

C) Interest on loans

D) Partners drawings

D) Partners drawings

#17. The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a

A) Bonus

A) Bonus

B) Good will

B) Good will

C) Premium

C) Premium

D) Commission

D) Commission

#18. Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?

A) Selling price

A) Selling price

B) Fixed percentage on cost

B) Fixed percentage on cost

C) Cost price

C) Cost price

D) Invoice price

D) Invoice price

#19. When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________

A) Price above or below the stipulated price

A) Price above or below the stipulated price

B) Any price but not below the transfer price

B) Any price but not below the transfer price

C) Cost price

C) Cost price

D) A price that is equal to the mark up

D) A price that is equal to the mark up

#20. In departmental accounting, which is not a transfer pricing_________

A) cost based transfer price

A) cost based transfer price

B) market based transfer pricing

B) market based transfer pricing

C) Dual pricing system

C) Dual pricing system

D) peak pricing

D) peak pricing

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

A) Formation

A) Formation

B) dissolution

B) dissolution

C) winding up

C) winding up

D) termination

D) termination

#22. Using the following: Balance as par overdraft of the cashbook is ₦4000, uncredited cheque is ₦2300, bank charges ₦300, unpresented cheque ₦5000. What is the adjusted cashbook balance?

A) 4000

A) 4000

B) 300

B) 300

C) 4300

C) 4300

D) 5000

D) 5000

#23. Branch stock adjustment account is prepared at?

A) Cost price

A) Cost price

B) new price

B) new price

C) invoice price

C) invoice price

D) normal price

D) normal price

#24. A partnership deed is used to____________

A) Promote mutual understanding

A) Promote mutual understanding

B) Enhance mistrust

B) Enhance mistrust

C) Encourage discrepancy

C) Encourage discrepancy

D) Control funds

D) Control funds

#25. The cost price method is applicable when_____

A) Goods are sold at specific prices

A) Goods are sold at specific prices

B) goods are perishable

B) goods are perishable

C) goods attract different gross profit percentage

C) goods attract different gross profit percentage

D) to disclose gross profit or loss

D) to disclose gross profit or loss

#26. In dealing with incomplete record, fixed assets are posted to___________-

A) Profit and loss account as brought forward figure

A) Profit and loss account as brought forward figure

B) Closing balance sheet as carried forward figure

B) Closing balance sheet as carried forward figure

C) Closing balance sheet as brought forward figure

C) Closing balance sheet as brought forward figure

D) Profit and loss as carried forward figure

D) Profit and loss as carried forward figure

#27. Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January ,2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. What is the interest on the drawings of Tea?

A) ₦705

A) ₦705

B) ₦500

B) ₦500

C) ₦1000

C) ₦1000

D) ₦10000

D) ₦10000

#28. Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January ,2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. What is the interest on the drawings of Tea?

A) ₦705

A) ₦705

B) ₦500

B) ₦500

C) ₦1000

C) ₦1000

D) ₦10000

D) ₦10000

#29. Which of the following should not be adjusted for in the profit and loss account?

A) Accruals

A) Accruals

B) inventory

B) inventory

C) subscription

C) subscription

D) depreciation

D) depreciation

#30. In the absence of a partnership deed, the act stipulates that____________

A) An amount should be fixed as salaries for partners

A) An amount should be fixed as salaries for partners

B) Profits and losses should not be shared equally

B) Profits and losses should not be shared equally

C) Interest on partner’s loan should be 25%

C) Interest on partner’s loan should be 25%

D) Interest should not be allowed on partners drawings

D) Interest should not be allowed on partners drawings

#31. A partnership’s internal regulation are set out by________

A) A constitution

A) A constitution

B) A law

B) A law

C) A deed

C) A deed

D) An article

D) An article

#32. Sule and Ahmed are in partnership sharing profit and losses equally. If Khadija is admitted as a new partner to take 1/5 th as her share. What is the new profit or loss sharing?

A) Sule1/3, Ahmed1/3, Khadija 1/3

A) Sule1/3, Ahmed1/3, Khadija 1/3

B) Sule1/3, Ahmed1/3, Khadija 1/3

B) Sule1/3, Ahmed1/3, Khadija 1/3

C) Sule1/5, Ahmed1/5, Khadija3/5

C) Sule1/5, Ahmed1/5, Khadija3/5

D) Sule2/5, Ahmed1/5, Khadija2/5

D) Sule2/5, Ahmed1/5, Khadija2/5

#33. Transfers from the head office to branches are best carried out at__________

A) Cost price

A) Cost price

B) Cost plus mark up

B) Cost plus mark up

C) Selling price

C) Selling price

D) Market price

D) Market price

#34. Which of the following is a common cause of a discrepancy between head office and branch trial office________

A) Stock and repayment

A) Stock and repayment

B) Creditors and cash in transit

B) Creditors and cash in transit

C) Stock and cash in transit

C) Stock and cash in transit

D) Debtors and cash in transit

D) Debtors and cash in transit

#35. Departmentalization of accounts is useful because it shows the____________

A) Over all performance of a division

A) Over all performance of a division

B) Cost per unit of a profit

B) Cost per unit of a profit

C) Price per unit of a product

C) Price per unit of a product

D) Over all performance of a firm

D) Over all performance of a firm

#36. Why should a new partner contribute towards goodwill on his admission?

A) It is a norm

A) It is a norm

B) to ensure new partner also have a stake in the business

B) to ensure new partner also have a stake in the business

C) the firm into which he is entering already has some goodwill in the market

C) the firm into which he is entering already has some goodwill in the market

D) to purchase the business

D) to purchase the business

#37. The rent expense for Trendy store is ₦3500. Trendy store has three departments; jewelry, hair dressing, and clothing. The floor spaces occupied by the departments are 3:2:5 respectively. What is the rent allocated to clothing department?

A) ₦700

A) ₦700

B) ₦1050

B) ₦1050

C) ₦1750

C) ₦1750

D) ₦3500

D) ₦3500

#38. The rent expense for Trendy store is ₦3500. Trendy store has three departments; jewelry, hair dressing, and clothing. The floor spaces occupied by the departments are 3:2:5 respectively. What is the rent allocated to clothing department?

A) ₦700

A) ₦700

B) ₦1050

B) ₦1050

C) ₦1750

C) ₦1750

D) ₦3500

D) ₦3500

#39. Cost of rent as an expense can be apportioned to all department on the basis of:

A) No of employees

A) No of employees

B) stock value

B) stock value

C) space occupied

C) space occupied

D) wages

D) wages

#40. Which of the following is a conversion cost?

A) Factory overhead

A) Factory overhead

B) purchases

B) purchases

C) material cost

C) material cost

D) wages

D) wages

#41. Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January , 2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. what is the closing balance in Tea’s current account

A) 36,925Cr

A) 36,925Cr

B) 40,000Cr

B) 40,000Cr

C) 50,000Dr

C) 50,000Dr

D) 36,295Dr

D) 36,295Dr

#42. To account for expenses paid by head office on behalf of the branch, the branch should___________

A) Debit profit and loss account and credit head office account

A) Debit profit and loss account and credit head office account

B) Debit head office account and credit cash

B) Debit head office account and credit cash

C) Credit cash and debit profit and loss account

C) Credit cash and debit profit and loss account

D) Credit profit and loss account and debit head office account

D) Credit profit and loss account and debit head office account

#43. Which of the following is not an inventory costing method?

A) FIFO

A) FIFO

B) LIFO

B) LIFO

C) Average cost method

C) Average cost method

D) LILA

D) LILA

#44. The major source of document which enables employer to calculate the employee wages is the?

A) norminal roll of employees

A) norminal roll of employees

B) records of number of hours worked

B) records of number of hours worked

C) effort of the employee

C) effort of the employee

D) Record of independence per employee

D) Record of independence per employee

#45. The total credit sales for a period can be extracted from the?

A) Cash book

A) Cash book

B) Sales day book

B) Sales day book

C) Petty cash book

C) Petty cash book

D) Returns inwards

D) Returns inwards

#46. A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000. If the scrap value is presently N15,000, what will be the yearly depreciation using the straight line method?

A) N4,000

A) N4,000

B) N7,000

B) N7,000

C) N11,000

C) N11,000

D) N24,000

D) N24,000

#47. Mrs. Okoro who lives in the riverine community of Rivers State makes her living through crabbing and fishing. This type of occupation is?

A) commercial

A) commercial

B) manufacturing

B) manufacturing

C) service

C) service

D) Extractive

D) Extractive

#48. A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000. The yearly depreciation using the straight line method would be

A) N8,800

A) N8,800

B) N6,500

B) N6,500

C) N5,200

C) N5,200

D) N4,400

D) N4,400

#49. The accounting entries used to record a cheque issued by a business is to?

A) debit cash book and credit drawer

A) debit cash book and credit drawer

B) credit cash book and debit drawer

B) credit cash book and debit drawer

C) debit cash book and credit suspense account

C) debit cash book and credit suspense account

D) credit cash book and debit suspense account

D) credit cash book and debit suspense account

Finish

Practice other past questions here

Practice other Financial Accounting Past Questions Here