Financial Accounting is one of the core subjects for Senior Secondary school students in commercial classes. It is one of the most feared subjects after Mathematics. It is because of the phobia for the calculations involved in this subject that students prefer Art classes where there are lesser calculation subjects and also most courses in the university for students in art classes do not require mathematics as a compulsory requirements and the few who manage to go for it prefer searching for any Financial Accounting exam past question and answer booklet and cramming the questions and answers instead of studying the required text books to understand the subject better.
There is a popular saying “Face your fears head on” when you do so fear dissipates by 50% if you do not face your fears you will not come to terms with the popular saying that Fear is a mirage, it does not exist, its the cooked up mental scenario by the mind. Financial Accounting is one of the most interesting subjects for students in senior secondary schools that understands the principle. Understanding the principle of Accounting makes understanding the subject much easier.
Scholars have always advised students that past questions and answers are best made use of after reading thoroughly, questions and answers are used as a metric to test your strengths and identify your weaknesses on a particular subject and work on them. The Financial Accounting past questions and answers in PDF file in this post should not be made as your means of study rather a tool to test your preparedness for writing any Financial Accounting examination in any university or polytechnic.
We will give a summary of what you are to expect from the Financial Accounting past questions and answer PDF document which we have provided below before we provide you with the Download link for the subject. This download link will take you to the full document containing close to 100 Financial Accounting past questions and answers.
Please note, do not limit your scope of reading to the questions and answers provided in this post rather expand your studies and search for more Financial Accounting examination past questions and answers and answer them. When answering these questions, there is always the temptation to look at the answers before answering the questions, This is a wrong strategy because your mind would be limited to calculate and force your answer towards the exact answer of the question hence making you limit your scope of thinking.
Below are the list of Financial Accounting questions and answers and the PDF download link. Kindly share with your friends because it would be of immense help to them.
FINANCIAL ACCOUNTING EXAMINATION PAST QUESTIONS AND ANSWERS – PDF FILE
1) A financial analyst needs accounts information to (a) maintain the production section of the business (b) know why transactions cause increases and decreases in asset (c) advice on how to manage the business (d) know how to record transaction in T account ANS: C
2) Creditors use accounting information for the purpose of (A) planning sales to a company (B) controlling a company’s affairs (C) investing in a company (D) assessing a company’ liquidity ANS: D
3) In preparing accounting records, the owners of a business and the business are treated as (A) the same person (B) having business relationship (C) separate legal entities (D) Partners ANS: C
4) One of the major features of bookkeeping is that it (a) provides permanent records for all financial transactions (b) is futuristic in nature (c) accepts responsibility for all wrong posting (d) does not give room for double entry procedure ANS: A
5) The accounting principle which states that for every debit entry, there is a corresponding credit entry is recognized as ___ concept. (a) realization (b) entity (c) going concern (d) duality ANS: D
6) The art of collecting, recording, presenting and interpreting accounting data is ___. (a) cost accounting (b) management accounting (c) financial accounting (d) data processing ANS: C
7) The assumption that a business has perpetual existence is recognized by___. (a) entity concept (b) periodicity concept (c) going concern concept (c) realization concept ANS: C
8) The most important reason for studying accounting is that (a) the information provided by accounting is useful in making decisions (b) accounting plays an important role in a society (c)the study of accounting leads to a challenging career (d) accounting provides gross profit information ANS: A
9) Which of the following accounting conventions suggests that accountants should use a method of valuation that understates rather than overstates result (a) Conservatism (b) Historical (c) Monetary (d) Cost ANS: A
10) Which of the following concepts is expected to hold when a proprietor makes a drawing of goods or cash from the business? (a) business entity (b) realization (c) going concern (d) dual-aspect ANS: A
11) A payment of cash of N20 to John was entered on the receipt side of the cash book in error and credited to John’s account. Which of the following journal entries can be used to correct the error? (a) John: N40 Dr, Cash: 40 Cr. (b) Cash: N40. (c) John: N20 Dr, Cash: N20 Cr. (d) Cash: 20 Dr, John: N20 Cr. sANS: A
12) A sales Day Book is used for recording___ (a) credit sales (b) sales returns (c) hire purchase (d) cash sales ANS: A
13) A trial balance is usually prepared by an accountant from account balances in the ledger for the purpose of (a) classifying in the ledger (b) testing arithmetical accuracies of the ledger account balance (c) identifying the balance sheet items (d) providing a basis for establishing the accountant’s competence. ANS: B
14) Bola, UTC’s regular customer, owned N1000 on account of a radio bought. If he sent a cheque for N500, UTC would send him a (a) credit note (b) debit note (c) journal voucher (d) way bill ANS: A
15) Books of original entry are used for (a) recording business transactions (b) the adjustment of accounts (c) reminding the book keeper to-post transactions in the ledger (d) informing the bookkeeper about the state of affairs. ANS: A
16) If salary account is debited instead of stationary account, the error committed is that of (a) commission (b) omission (c) principle (d) compensation ANS: A
17) Ledger accounts is mainly classified into (a) nominal, real and personal account (b)fixed and current accounts(c) management, financial and public sector accounting (d) bank and cash accounts ANS: A
18) One major advantage of a ledger is that it (a) is a book of original entry (b) is only accessible to shareholders during distribution (c) removes the need for preparing a balance sheet after each transaction (d) can be used by any type of business. ANS: D
19) Return inwards is also known as____ (a) purchases returns (b) sales returns (c) goods on sale of return (d) goods in transit ANS: B
20) The account which refers to the tangible assets of a company that is of permanent nature is the (a) personal account (b) real account (c) nominal account (d) cash account ANS: B
21) The document that is used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as (a) credit note (b) debit note (c) invoice (d) voucher ANS: A
22) The effect of payment of a liability is that it (a) increases both assets and liabilities (b) increases assets and decrease liabilities (c) decreases assets and increases liabilities (d) decreases both assets and liabilities ANS: D
23) The term posting in accounting refers to (a) recording entries in the journal (b) transferring the balances in the ledger to the trial balance (c) tracing amounts from the journal to the ledger to find errors (d) transferring entries to the ledger from the journal. ANS: D
24) Which of the following is not a real account? (a) buildings account (b) motor vehicle account (c) patents account (d) furniture account ANS: C
25) Which of the following is not a revenue account? (a) sales (b) purchase (c) discount received (d) interest received ANS: B
26) Which of the following is the basic accounting equation? (a) Assets = capital + liabilities (b) capital = assets + liabilities (c) liabilities = assets + capital (d) assets = liabilities – equity ANS: A
27) A system where a separate cash book is maintained for small payment is ____ (a) single entry (b) imprest (c) float (d) reimbursement ANS: B
28) An analytical cash book is used to ___ (a) indicate sources of cash received (b) categorise petty cash payment (c) separate cash and bank balance (d) analyse amounts due from debtors ANS: B
29) The sum of money given to a petty cashier out of which small payments are made is called (a) bonus (b) loan (c) advance (d) float ANS: D
30) A rent of 250,000 was paid by John to his landlord by cheque. The double entry in John’s books is (a) debit rent account, credit bank account (b) debit rent account, credit John’s account (c) debit bank account, credit rent account (d) debit John’s account, credit rent account ANS: A
The above is the summary of what is contained in the Financial Accounting past questions and answers in the PDF file below. All answers here are correct, you can as well make references to your Financial Accounting text books should you have doubts as regards any of the answers.
This is a rare opportunity you should take advantage of, please share this post to friends who might be in need of this study material. Hope the above is well explained. Since the Financial accounting questions all have answers attached to them there would most likely be no need for questions, however, we still entertain questions and your inputs on the subject matter via our comment section below or our contact us page so we can keep udating this contents and adding new questions and answers as they come,