These Financial Accounting questions and answers were pulled from our book (Financial Accounting questions for SS 1); Compiled to serve as a reference material to help teachers draw up test and exam questions faster. It could also help students assess their level of exam preparation. Each sample question includes correct answers.
Sample Financial Accounting Exam Questions and Answers
TOPIC: CONCEPTS AND CONVENTIONS OF ACCOUNTING
DIRECTION: Choose the correct answer from the lettered options.
1. Which of the following is not an accounting concept?
A. Entity
B. Going-concern
C. Consistency
D. Historical cost
E. Dual aspect
2. The accounting concept which allows the use of a particular method for treating a transaction for a reasonable number of years is _________
A. consistency
B. cost
C. accural
D. conservatism
E. prudency
3. The accounting concepts that supports the application of double entry book-keeping is _________
A. going-concern
B. historical cost
C. consistency
D. prudency
E. dual aspect
4. “Accountant do not count their chicken before they are hatched,” this is the concept of ________
A. materiality
B. realisation
C. materiality
D. going-concern
E. prudence
5. Money received from a customer is recorded in the customer’s account and bank account; The accounting concept applied is _________
A. business entity
B. dual aspect
C. going-concern
D. money measurement
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TOPIC: FINAL ACCOUNTS
DIRECTION: Choose the correct answer from the lettered options.
1. _________ represents a reduction in the price of goods given to special classes of customers
A. trade discount
B. discount on customers
C. allowance off price list.
D. discount on creditors.
E. discount on purchases
2. S. Sule sets aside from his private funds ₦20,000 for business purposes. The ₦20,000 is referred to as _________
A. drawings
B. capital
C. loan
D. profit
3. Carriage inwards is shown on the _______
A. debit side of the trading account
B. credits side of the trading account
C. credit side of the profit and loss account
D. debit side of the profit and loss account
Use the following information to answer the question
4. What is the amount of the new provision for bad debts if Lagbaja is the debtor?
1/1/06 Debtors D2,600
1/1/06 Provision for bad debts D00
31/12/06 Bad debt D00
31/12/08 Sold goods to Lagbaja on credit 5% o debtors
A. D130
B. D127
C. D124
D. D120
5. Sales was D12,500, total expenses was D2,500 and net profit is 10% of sales. What is the gross profit?
A. D11,250
B. D8,750
C. D3,750
D. D1,250
