Accounting past questions for WAEC, NECO, GCE, and JAMB exams, featuring 100 objective questions and 20 theory questions with verified answers to help you excel in your exams.
Accounting Past Questions | WAEC, NECO, GCE and JAMB (1–20)
Accounting Past Questions
- The main purpose of accounting is to
A. reduce cost of operations
B. record all business transactions
C. aid management in decision-making
D. prevent fraud in business
Answer: C
- Which of the following is an example of a current asset?
A. Machinery
B. Land
C. Debtors
D. Capital
Answer: C
- The excess of total assets over total liabilities is
A. working capital
B. net profit
C. gross profit
D. owner’s equity
Answer: D
- The book of original entry used for recording goods returned to suppliers is the
A. sales day book
B. purchases day book
C. returns inwards book
D. returns outwards book
Answer: D
- A debit entry in the cash book means
A. decrease in cash
B. increase in cash
C. increase in liability
D. decrease in capital
Answer: B
- The trial balance is prepared to
A. detect fraud
B. calculate profit
C. check arithmetic accuracy
D. prepare the balance sheet
Answer: C
- Which of the following accounts is credited when goods are sold on credit?
A. Sales account
B. Purchases account
C. Debtors account
D. Bank account
Answer: A
- Which of the following is not a fixed asset?
A. Building
B. Plant
C. Inventory
D. Equipment
Answer: C
- The double entry principle states that
A. all accounts must be closed yearly
B. for every debit, there must be a corresponding credit
C. every transaction must affect two assets
D. assets must always equal liabilities
Answer: B
- The person or organization to whom money is owed is called
A. debtor
B. creditor
C. proprietor
D. accountant
Answer: B
- Depreciation is charged on
A. current liabilities
B. current assets
C. fixed assets
D. intangible assets
Answer: C
- A trial balance totals N55,500 on the debit side and N55,800 on the credit side. This implies
A. profit of N300
B. loss of N300
C. an error of N300
D. capital of N300
Answer: C
- Which of the following is an intangible asset?
A. Cash
B. Patent
C. Equipment
D. Stock
Answer: B
- The account used to record goods taken by the owner for personal use is
A. purchases account
B. drawings account
C. sales account
D. expenses account
Answer: B
- Capital introduced by the owner increases
A. expenses
B. drawings
C. liabilities
D. owner’s equity
Answer: D
- A petty cash book is used to
A. record large payments
B. track inventory
C. record minor day-to-day expenses
D. pay salaries
Answer: C
- Which of the following is a real account?
A. Capital account
B. Wages account
C. Debtor account
D. Furniture account
Answer: D
- Goodwill is an example of
A. current liability
B. fictitious asset
C. intangible asset
D. fixed liability
Answer: C
- Net profit is transferred to the
A. cash book
B. sales account
C. capital account
D. drawings account
Answer: C
- The balance sheet shows
A. cash inflow and outflow
B. profit and loss of a firm
C. the financial position of a firm
D. movement of stock
Answer: C
Accounting Past Questions | WAEC, NECO, GCE and JAMB (21–40)
Accounting Past Questions obj
- Which of the following is a liability?
A. Bank overdraft
B. Stock
C. Machinery
D. Debtors
Answer: A
- The purchase ledger is used to record transactions with
A. customers
B. suppliers
C. employees
D. shareholders
Answer: B
- The accounting equation is
A. Assets = Liabilities – Capital
B. Assets + Capital = Liabilities
C. Assets = Capital + Liabilities
D. Assets – Liabilities = Capital
Answer: C
- Which document is used to request payment from a debtor?
A. Invoice
B. Receipt
C. Statement of account
D. Credit note
Answer: C
- The book used to record cash received is called
A. cash receipts journal
B. cash payments journal
C. sales journal
D. purchase journal
Answer: A
- Which account is debited when a business receives cash from a debtor?
A. Debtor’s account
B. Cash account
C. Sales account
D. Bank account
Answer: B
- Which of the following expenses is usually prepaid?
A. Rent
B. Salaries
C. Insurance
D. Electricity
Answer: C
- A ledger is a book that
A. records all transactions
B. contains personal accounts only
C. contains accounts of the same type
D. contains all accounts of the business
Answer: D
- Capital expenditure is expenditure on
A. day-to-day running costs
B. purchase of fixed assets
C. salaries and wages
D. rent and rates
Answer: B
- Which of the following is not an example of a business expense?
A. Rent
B. Wages
C. Salaries
D. Capital introduced
Answer: D
- Which of the following is a nominal account?
A. Building account
B. Sales account
C. Debtors account
D. Cash account
Answer: B
- The debit side of the sales account shows
A. sales returns
B. sales made
C. cash received from sales
D. credit sales
Answer: A
- What is the purpose of a trial balance?
A. To list assets and liabilities
B. To check the arithmetic accuracy of accounts
C. To calculate profit
D. To prepare cash flow statements
Answer: B
- When goods are sold on credit, which account is credited?
A. Purchases account
B. Debtors account
C. Sales account
D. Cash account
Answer: C
- The source document for recording credit purchases is
A. Invoice
B. Receipt
C. Delivery note
D. Cheque
Answer: A
- Which of the following is a source document for cash payments?
A. Invoice
B. Receipt
C. Cheque counterfoil
D. Delivery note
Answer: C
- The control account for debtors is called
A. sales ledger control account
B. purchases ledger control account
C. general ledger control account
D. trial balance
Answer: A
- Which account records the value of goods sold?
A. Purchases account
B. Sales account
C. Inventory account
D. Capital account
Answer: B
- Accrued expenses are expenses
A. paid in advance
B. unpaid but incurred
C. recorded in the sales journal
D. related to assets
Answer: B
- The document issued by a seller to acknowledge receipt of payment is called
A. invoice
B. receipt
C. debit note
D. credit note
Answer: B
Accounting Past Questions | WAEC, NECO, GCE and JAMB (41–60)
Accounting Past Questions objs
- The process of transferring entries from the journal to the ledger is called
A. posting
B. balancing
C. journalizing
D. totaling
Answer: A
- Which of the following is a capital expenditure?
A. Repairs to machinery
B. Purchase of delivery van
C. Payment of rent
D. Payment of salaries
Answer: B
- The document used to record goods returned by customers is called
A. debit note
B. credit note
C. invoice
D. receipt
Answer: B
- Which account is credited when goods are purchased on credit?
A. Purchases account
B. Creditor’s account
C. Cash account
D. Sales account
Answer: B
- Which of these is not part of the financial statements?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Invoice
Answer: D
- The profit and loss account shows
A. the financial position
B. income and expenses for a period
C. assets and liabilities
D. capital invested
Answer: B
- Which account is debited when salaries are paid?
A. Salaries account
B. Cash account
C. Capital account
D. Bank account
Answer: A
- The difference between sales and cost of goods sold is
A. gross profit
B. net profit
C. capital
D. expenses
Answer: A
- Which of the following is a current liability?
A. Bank loan repayable in 5 years
B. Trade creditors
C. Land
D. Equipment
Answer: B
- The process of closing the books at the end of the accounting period is called
A. posting
B. balancing
C. trial balancing
D. journalizing
Answer: B
- The book used to record all credit sales is called
A. sales journal
B. purchases journal
C. cash receipts journal
D. returns inwards journal
Answer: A
- What is the normal balance of a liability account?
A. Debit
B. Credit
C. Zero
D. Either debit or credit
Answer: B
- Which of the following is a disadvantage of cash transactions?
A. Easy to trace
B. Risk of theft
C. Increases credit sales
D. Helps in budgeting
Answer: B
- Accumulated depreciation is classified as a
A. current asset
B. current liability
C. contra asset
D. expense
Answer: C
- Which of the following is an example of capital income?
A. Loan received
B. Sales revenue
C. Rent received
D. Interest on investments
Answer: A
- The book that records all cash payments is called
A. cash receipts book
B. cash payments book
C. purchases book
D. sales book
Answer: B
- Which account would be credited when goods are returned to the supplier?
A. Purchases returns account
B. Sales returns account
C. Creditor’s account
D. Debtor’s account
Answer: A
- The owner’s drawings account normally has a
A. debit balance
B. credit balance
C. zero balance
D. either debit or credit balance
Answer: A
- Which account is debited when the business receives cash from a debtor?
A. Debtors account
B. Cash account
C. Sales account
D. Bank account
Answer: B
- Which of the following is a final account?
A. Journal
B. Trial balance
C. Balance sheet
D. Cash book
Answer: C
Accounting Past Questions | WAEC, NECO, GCE and JAMB (61–80)
Accounting Past Questions objs
- Which accounting principle assumes the business will continue to operate indefinitely?
A. Going concern principle
B. Prudence principle
C. Consistency principle
D. Matching principle
Answer: A
- What is the normal balance of an asset account?
A. Debit
B. Credit
C. Zero
D. Either debit or credit
Answer: A
- Which of the following is an example of a liability?
A. Bank overdraft
B. Cash in hand
C. Furniture
D. Stock
Answer: A
- Which financial statement shows the profit or loss made by a business?
A. Balance sheet
B. Cash flow statement
C. Profit and loss account
D. Trial balance
Answer: C
- What is the purpose of a bank reconciliation statement?
A. To record cash transactions
B. To reconcile the cash book with the bank statement
C. To prepare the balance sheet
D. To calculate bank charges
Answer: B
- Which of the following is an example of a fixed asset?
A. Debtors
B. Stock
C. Machinery
D. Bank overdraft
Answer: C
- The term “liquidity” refers to
A. the ability to pay short-term debts
B. long-term investments
C. owner’s equity
D. fixed assets
Answer: A
- The purchase of goods for resale is recorded in the
A. purchases book
B. sales book
C. cash book
D. general journal
Answer: A
- Which account is credited when the business owner introduces capital?
A. Drawings account
B. Capital account
C. Purchases account
D. Sales account
Answer: B
- An invoice is a document issued by the
A. buyer to the seller
B. seller to the buyer
C. bank to the customer
D. government to the business
Answer: B
- Which of the following is an example of a fictitious asset?
A. Patent
B. Goodwill
C. Capital
D. Machinery
Answer: B
- The trial balance is prepared from the
A. journal
B. ledger
C. cash book
D. invoice
Answer: B
- When the business buys goods on credit, which account is debited?
A. Creditors account
B. Purchases account
C. Cash account
D. Sales account
Answer: B
- Which of the following is not included in current assets?
A. Stock
B. Debtors
C. Machinery
D. Cash in hand
Answer: C
- Which of the following is a capital receipt?
A. Loan received from bank
B. Rent received
C. Commission received
D. Discount received
Answer: A
- What is the accounting period?
A. The time a business has existed
B. The period for which financial statements are prepared
C. The time taken to pay creditors
D. The time taken to receive payment from debtors
Answer: B
- Which of the following best describes a journal?
A. A book of original entry
B. A ledger account
C. A financial statement
D. A trial balance
Answer: A
- Which account shows the amount owed to the business by customers?
A. Debtors account
B. Creditors account
C. Capital account
D. Bank account
Answer: A
- Which of the following shows the owner’s financial interest in the business?
A. Assets
B. Capital
C. Liabilities
D. Expenses
Answer: B
- A balance sheet shows the
A. financial position of the business at a point in time
B. profit made over a period
C. cash flow of the business
D. transactions of the business
Answer: A
Accounting Past Questions | WAEC, NECO, GCE and JAMB (81–100)
Accounting Past Questions objs
- Which account is debited when a business pays rent?
A. Rent account
B. Cash account
C. Capital account
D. Rent income account
Answer: A
- What type of account is “Drawings”?
A. Asset
B. Liability
C. Contra capital
D. Expense
Answer: C
- Which of the following is not a characteristic of a sole proprietorship?
A. Unlimited liability
B. Separate legal entity
C. Owned by one person
D. Simple to set up
Answer: B
- Which document is used to show the amount a customer owes to a business?
A. Invoice
B. Receipt
C. Credit note
D. Statement of account
Answer: D
- The purpose of depreciation is to
A. increase the value of assets
B. allocate the cost of assets over their useful life
C. record capital expenditure
D. record revenue expenditure
Answer: B
- Which of the following would increase the capital of a business?
A. Owner’s drawings
B. Payment of expenses
C. Introduction of additional capital
D. Payment of creditors
Answer: C
- The matching principle in accounting requires that
A. expenses are matched with revenues they helped to generate
B. assets are matched with liabilities
C. capital is matched with expenses
D. all transactions are recorded in the ledger
Answer: A
- Which of the following is a liability?
A. Trade creditors
B. Bank loan
C. Accrued expenses
D. All of the above
Answer: D
- Which financial statement shows assets, liabilities, and capital?
A. Income statement
B. Balance sheet
C. Cash flow statement
D. Trial balance
Answer: B
- What does the term “accruals” mean in accounting?
A. Revenues received in advance
B. Expenses incurred but not yet paid
C. Cash payments made
D. Capital introduced
Answer: B
- The purpose of a petty cash book is to
A. record all cash transactions
B. record small cash payments
C. record credit sales
D. record bank transactions
Answer: B
- Which of the following is a capital expenditure?
A. Repair of machinery
B. Purchase of a new machine
C. Payment of salaries
D. Payment of rent
Answer: B
- Which of the following best describes goodwill?
A. Physical asset
B. Fictitious asset
C. Liability
D. Revenue
Answer: B
- Which account is credited when goods are returned by customers?
A. Sales returns account
B. Purchases account
C. Debtors account
D. Creditors account
Answer: A
- The statement of financial position is also known as
A. income statement
B. profit and loss account
C. balance sheet
D. cash flow statement
Answer: C
- Which account is used to record the purchase of office supplies?
A. Purchases account
B. Office supplies account
C. Sales account
D. Capital account
Answer: B
- What is a contra account?
A. An account that reduces the balance of a related account
B. An account used to record revenues
C. An account used to record expenses
D. An account that shows capital introduced
Answer: A
- The document used to approve payment to suppliers is called
A. invoice
B. cheque
C. purchase order
D. payment voucher
Answer: D
- Which of the following is NOT recorded in the purchases journal?
A. Credit purchases of goods
B. Cash purchases of goods
C. Purchase of assets on credit
D. None of the above
Answer: B
- Which of the following is an example of an intangible asset?
A. Machinery
B. Goodwill
C. Stock
D. Debtors
Answer: B
100 Accounting past questions for WAEC, NECO, GCE, and JAMB objectives
Accounting Past Questions | WAEC, NECO, GCE, and JAMB Theory
- Explain the meaning of accounting.
Answer: Accounting is the process of identifying, recording, summarizing, analyzing, and communicating financial information about an organization to users for decision-making. - What is the difference between capital expenditure and revenue expenditure?
Answer: Capital expenditure is spending on acquiring or improving fixed assets that benefit the business over several years, while revenue expenditure is spending on the day-to-day running expenses of the business, such as wages and repairs. - Describe the going concern principle.
Answer: The going concern principle assumes that a business will continue to operate indefinitely and will not be liquidated in the foreseeable future. - What is depreciation, and why is it charged?
Answer: Depreciation is the allocation of the cost of a fixed asset over its useful life. It is charged to reflect the reduction in the asset’s value due to wear and tear or obsolescence. - Explain the difference between cash and credit transactions.
Answer: Cash transactions involve immediate payment at the time of purchase or sale, whereas credit transactions involve deferred payment, allowing the buyer to pay at a later date. - What is meant by double-entry bookkeeping?
Answer: Double-entry bookkeeping is an accounting system where every transaction affects at least two accounts, with one account debited and another credited, ensuring the accounting equation stays balanced. - Define the term ‘trial balance’ and its purpose.
Answer: A trial balance is a list of all ledger account balances at a particular date. Its purpose is to check that total debits equal total credits, helping to detect errors in recording. - What are financial statements? Name any two.
Answer: Financial statements are reports that summarize the financial performance and position of a business. Examples include the balance sheet and income statement (profit and loss account). - Explain the matching principle in accounting.
Answer: The matching principle states that expenses should be recorded in the same accounting period as the revenues they help to generate, to accurately measure profit. - What is meant by ‘liquidity’ in accounting?
Answer: Liquidity refers to the ability of a business to meet its short-term financial obligations using its current assets. - Differentiate between a sole proprietorship and a partnership.
Answer: A sole proprietorship is owned by one person who has unlimited liability, while a partnership is owned by two or more persons who share profits, losses, and liabilities. - What is meant by ‘capital’ in accounting?
Answer: Capital is the amount of money or assets the owner invests in the business for its operation. - Describe the purpose of a petty cash book.
Answer: A petty cash book is used to record small cash payments for minor expenses to keep track of petty cash usage. - What are current assets? Give two examples.
Answer: Current assets are assets expected to be converted into cash or used up within one year. Examples include cash in hand and debtors. - Explain the concept of accruals.
Answer: Accruals are revenues earned or expenses incurred that have not yet been received or paid by the end of an accounting period. - What is goodwill in accounting?
Answer: Goodwill is an intangible asset that arises when a business is purchased for more than the fair value of its net tangible assets, reflecting reputation and customer loyalty. - How is the balance sheet structured?
Answer: The balance sheet shows the assets, liabilities, and owner’s equity of a business at a specific point in time, following the accounting equation: Assets = Liabilities + Capital. - What is the purpose of preparing a bank reconciliation statement?
Answer: It is prepared to reconcile the difference between the cash book balance and the bank statement balance, identifying errors or outstanding transactions. - What is meant by ‘drawings’ in accounting?
Answer: Drawings refer to money or assets withdrawn by the owner from the business for personal use. - Explain the difference between the sales journal and the purchases journal.
Answer: The sales journal records all credit sales, while the purchases journal records all credit purchases of goods.
READ ALSO – Commerce past questions on WAEC, NECO, GCE and JAMB objectives and theories
In conclusion, practicing these Accounting past questions from WAEC, NECO, GCE, and JAMB will enhance your understanding of key accounting concepts and improve your exam performance. Consistent revision of both objective and theory questions is essential for success. Use these past questions to test your knowledge, identify weak areas, and build confidence for your upcoming exams.