These Financial Accounting question and answers were pulled from our book ( Financial Accounting questions for SS3); 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: CONTRACT AND ESTATE ACCOUNT
DIRECTION: Choose the correct answer from the lettered options.
1. All costs arising at the completion of the contract is ______ to the contract
A. debited
B. credited
C. added
D. posted
2. _____ is appointed to handle the properties of a deceased person
A. Accountant
B. Lawyer
C. Engineer
D. Executor
3. In contract account Work-In-Progress is debited?
A. True
B. False
4. _________is money held by the Employer/Client as a safeguard against defects which may subsequently develop and which the Contractor may fail to remedy
A. Sustainance money
B. Relief
C. Deposit money
D. Retention money
5. The following are enteries in Contract account EXCEPT ________
A. debit Contract account with all the expenses applicable to the particular contract
B. debit Contract account with all the Revenue applicable to the particular contract
C. debit Personal account of customers with contract price
D. when the customers pays, Credit his personal account and Debit bank
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TOPIC: DEPARTMENTAL ACCOUNTS AND BRANCH ACCOUNTS
DIRECTION: Choose the correct answer from the lettered options.
1. Which of the following statements is correct about the head office current account and the branch current account?
A. Both always have debit balance
B. Both always have credit balance
C. The head office current account has a credit balance while the branch current account has a debit balance
D. The head office current account has a debit balance while the branch current account has a credit balance
E. All of the above
2. One of the following is the method of apportionment of expenses in departmental account EXCEPT ________
A. Floor space basis
B. Turneover basis
C. Direct analysis basis
D. Purchases basis
3. Which of the following is not an objective of branch account?
A. To prevent fraud
B. To maximise cost and make comparison
C. Verification of stock
D. To ascertain project
4. Where the branches keep separate accounts, the accounting entries are;
(i) Head office account in the branch books
(ii) Branch account in the head office books
(iii) Head office account in the head office books
A. (i) and (ii) only
B. (ii) and (iii) only
C. (i) and (iii) only
D. (i), (ii) and (iii)
5. Cash stolen from Branch takings is recorded in the Head Office books by debiting ________
A. defalcations account and crediting branch stock account.
B. mark-up account and crediting branch stock account.
C. defalcations account and crediting profit and loss account.
D. cash account and crediting branch stock account.
E. branch stock account and crediting defalcations account.
