Preparing early for the 2026 JAMB examination is one of the smartest decisions you can make—especially for a subject like Financial Accounting, which requires constant practice. These 100 CBT-styled questions have been carefully designed to help you:
✔ Familiarize yourself with JAMB CBT format
✔ Understand how JAMB frames Accounting questions
✔ Identify your weak areas and improve them early
✔ Build speed and accuracy during CBT exams
✔ Boost your confidence before the real exam
✔ Master key Accounting concepts, calculations, and theories
✔ Improve your chances of scoring 80–90+ in AccountingIf you consistently practice these questions, your performance in the actual JAMB exam will improve significantly.
1. The primary purpose of Accounting is to
A. keep records for taxation
B. provide financial information
C. reduce business expenses
D. prevent fraud
Answer: B
2. Accounting information is mainly used by
A. students
B. managers
C. auditors
D. the government only
Answer: B
3. Which of the following is NOT a branch of Accounting?
A. Financial Accounting
B. Cost Accounting
C. Taxation
D. Book-binding
Answer: D
4. The owner’s interest in a business is called
A. liability
B. capital
C. assets
D. debt
Answer: B
5. The accounting equation is
A. Assets = Capital – Liabilities
B. Liabilities = Assets + Capital
C. Assets = Capital + Liabilities
D. Capital = Assets × Liabilities
Answer: C
6. Which book records credit purchases of goods?
A. Purchase Journal
B. Sales Journal
C. Cash Book
D. General Journal
Answer: A
7. A trial balance is prepared to
A. detect all errors
B. replace ledger accounts
C. check arithmetic accuracy
D. determine profit
Answer: C
8. Internal users of accounting information include
A. shareholders
B. managers
C. customers
D. suppliers
Answer: B
9. The concept that assumes a business will continue indefinitely is
A. Money measurement
B. Going concern
C. Cost concept
D. Prudence
Answer: B
10. Which concept prevents understating expenses?
A. Prudence
B. Accrual
C. Matching
D. Dual Aspect
Answer: C
11. Cash transactions are recorded in the
A. Cashbook
B. Journal proper
C. Sales book
D. Purchases book
Answer: A
12. A petty cash system uses the
A. imprest system
B. discount system
C. credit system
D. matching system
Answer: A
13. Trade discount is
A. recorded in the books
B. allowed for early payment
C. not recorded in the books
D. granted for quantity purchased
Answer: C
14. Allowances given for prompt payment are called
A. cash discount
B. trade discount
C. rebate
D. bonus
Answer: A
15. Journal proper records
A. returns
B. dishonoured cheques
C. small expenses
D. credit sales
Answer: B
16. Ledger accounts are categorized into
A. two
B. three
C. four
D. five
Answer: B (Personal, Real, Nominal)
17. A debit entry in the cashbook represents
A. increase in cash
B. decrease in cash
C. increase in liabilities
D. increase in capital
Answer: A
18. A trial balance is extracted from
A. journal
B. ledger
C. balance sheet
D. income statement
Answer: B
19. Which error does a trial balance detect?
A. Commission
B. Original entry
C. Principle
D. Arithmetical error
Answer: D
20. Personal accounts are governed by
A. debit the receiver
B. credit the giver
C. debit expenses
D. debit assets
Answer: A
21. Depreciation is a process of
A. valuation
B. cost allocation
C. revenue allocation
D. asset appreciation
Answer: B
22. Straight-line method gives
A. constant depreciation
B. decreasing depreciation
C. increasing depreciation
D. no depreciation
Answer: A
23. Depreciation is charged on
A. land
B. goodwill
C. building
D. capital
Answer: C
24. Accumulated depreciation is
A. an asset
B. a liability
C. a contra-asset
D. income
Answer: C
25. Reducing balance method charges depreciation on
A. cost
B. scrap value
C. net book value
D. gross profit
Answer: C
26. Carriage inwards is charged to
A. trading account
B. profit and loss account
C. balance sheet
D. sales account
Answer: A
27. Carriage outwards is
A. selling expense
B. buying expense
C. production cost
D. capital expense
Answer: A
28. Gross profit =
A. sales + purchases
B. sales – cost of goods sold
C. purchases – sales
D. net profit + expenses
Answer: B
29. Drawings reduce
A. capital
B. assets
C. liabilities
D. revenue
Answer: A
30. Net profit is transferred to
A. capital account
B. loan account
C. cashbook
D. trading account
Answer: A
31. Control accounts are kept in the
A. general ledger
B. sales ledger
C. purchases ledger
D. petty cash book
Answer: A
32. Sales ledger control account records
A. creditors
B. debtors
C. cash sales
D. cash purchases
Answer: B
33. Credit purchases are posted to
A. creditors account
B. debtors account
C. capital account
D. income account
Answer: A
34. Contra entries appear in
A. control accounts
B. trial balance
C. cashbook
D. balance sheet
Answer: C
35. The main purpose of control accounts is to
A. detect errors
B. increase income
C. reduce expenses
D. show credit sales
Answer: A
36. Incomplete records are used by
A. large companies
B. partnerships
C. small businesses
D. government
Answer: C
37. Capital at start =
A. opening assets – liabilities
B. opening liabilities – assets
C. closing assets – liabilities
D. drawings – profit
Answer: A
38. Single entry system does NOT keep
A. cash records
B. ledger records
C. credit records
D. double entries
Answer: D
39. Statement of affairs resembles
A. trial balance
B. balance sheet
C. trading account
D. cashbook
Answer: B
40. Profit is calculated using
A. capital comparison
B. trading account
C. control account
D. journal
Answer: A
41. Government revenue includes
A. salaries
B. grants
C. assets
D. liabilities
Answer: B
42. Consolidated Revenue Fund is for
A. capital projects
B. day-to-day expenditure
C. loan repayment
D. savings
Answer: B
43. Government accounting emphasizes
A. profit
B. transparency
C. loss
D. trading
Answer: B
44. Public debt refers to
A. money owed to government
B. money government owes
C. tax paid by citizens
D. capital
Answer: B
45. Recurrent expenditure is spent on
A. salaries
B. building roads
C. buying equipment
D. constructing bridges
Answer: A
46. Partnership is formed by
A. deed
B. certificate
C. agreement
D. license
Answer: C
47. Partner’s current account records
A. capital changes
B. profits only
C. drawings only
D. day-to-day transactions
Answer: D
48. Interest on drawings is charged to
A. profit and loss account
B. partner
C. capital account
D. salary account
Answer: B
49. Goodwill is
A. tangible asset
B. current asset
C. intangible asset
D. liability
Answer: C
50. Partners share profit according to
A. capital
B. agreement
C. salary
D. goodwill
Answer: B
51. A company is owned by
A. shareholders
B. directors
C. government
D. employees
Answer: A
52. Issued share capital refers to
A. authorized capital sold
B. total capital allowed
C. capital in reserve
D. borrowed capital
Answer: A
53. Debentures represent
A. ownership
B. loan
C. income
D. assets
Answer: B
54. Interim dividend is paid
A. yearly
B. monthly
C. half-yearly
D. weekly
Answer: C
55. Preference shareholders receive
A. no dividend
B. fixed dividend
C. variable dividend
D. bonus
Answer: B
56. A bank overdraft is
A. asset
B. liability
C. income
D. capital
Answer: B
57. Bank statement is issued by
A. customer
B. trader
C. bank
D. auditor
Answer: C
58. Bank reconciliation corrects differences between
A. cashbook and ledger
B. bank statement and cashbook
C. cashbook and trial balance
D. ledger and journal
Answer: B
59. Standing order is
A. customer-initiated
B. bank-initiated
C. government order
D. instructions from auditor
Answer: A
60. Dishonoured cheque is
A. returned unpaid
B. paid twice
C. payment in advance
D. cheque with discount
Answer: A
61. Prime cost =
A. direct materials + direct labour
B. overheads + direct materials
C. factory cost – labour
D. selling cost + administrative cost
Answer: A
62. Overheads are
A. direct expenses
B. indirect expenses
C. direct labour
D. direct materials
Answer: B
63. Cost unit is
A. selling price
B. unit of product
C. fixed cost
D. variable cost
Answer: B
64. Marginal cost is
A. fixed cost only
B. variable cost only
C. total cost
D. selling cost
Answer: B
65. Break-even point is where
A. profit = revenue
B. profit = zero
C. loss = revenue
D. income = assets
Answer: B
66. The method that values stock assuming “first goods purchased are first sold” is
A. LIFO
B. FIFO
C. Simple average
D. Specific identification
Answer: B
67. Stock is classified as
A. fixed asset
B. capital
C. current asset
D. long-term liability
Answer: C
68. The stock valuation method that gives the most recent price is
A. FIFO
B. LIFO
C. Weighted average
D. Specific
Answer: B
69. Opening stock + purchases – closing stock equals
A. profit
B. cost of sales
C. net income
D. gross income
Answer: B
70. Stock-taking is usually done
A. monthly
B. yearly
C. weekly
D. at any time
Answer: B
71. Errors not revealed by a trial balance include
A. omission
B. casting error
C. listing error
D. carry-forward error
Answer: A
72. Suspense account is opened due to
A. incomplete records
B. disagreement in trial balance
C. bad debts
D. dishonoured cheques
Answer: B
73. Error of commission occurs when
A. wrong account of same class is posted
B. entry is omitted
C. entry is reversed
D. trial balance is wrong
Answer: A
74. Error of principle means posting to
A. wrong side
B. wrong account type
C. wrong ledger page
D. correct account
Answer: B
75. Errors that cancel each other are called
A. two-sided errors
B. compensating errors
C. commission errors
D. principle errors
Answer: B
76. Working capital =
A. current assets – current liabilities
B. total asset – liabilities
C. capital – drawings
D. profit – expenses
Answer: A
77. Gross profit margin is
A. GP / expenses × 100
B. GP / sales × 100
C. sales / GP × 100
D. GP / purchases × 100
Answer: B
78. Liquidity ratio shows
A. profitability
B. efficiency
C. ability to pay short-term debts
D. capital structure
Answer: C
79. Net profit ratio =
A. NP / purchases × 100
B. NP / expenses × 100
C. NP / cost of sales × 100
D. NP / sales × 100
Answer: D
80. Return on capital employed measures
A. profitability
B. liquidity
C. turnover
D. stock level
Answer: A
81. A credit balance in the cashbook means
A. bank overdraft
B. surplus cash
C. error
D. loan
Answer: A
82. A credit entry in bank statement means
A. withdrawal
B. deposit
C. loan
D. overdraft
Answer: B
83. Uncredited cheques are
A. added to bank statement
B. deducted from bank statement
C. added to cashbook
D. deducted from cashbook
Answer: A
84. Bank charges are
A. added to cashbook
B. deducted from cashbook
C. added to bank statement
D. ignored
Answer: B
85. Standing orders are
A. regular payments
B. cash purchases
C. irregular expenses
D. delayed payments
Answer: A
86. Fixed cost remains
A. constant per unit
B. constant in total
C. decreasing
D. variable
Answer: B
87. Variable cost changes with
A. fixed cost
B. output level
C. selling price
D. capital
Answer: B
88. Contribution =
A. sales – variable cost
B. sales – fixed cost
C. fixed cost – variable cost
D. sales + profit
Answer: A
89. Manufacturing account is used by
A. traders
B. retailers
C. manufacturers
D. wholesalers only
Answer: C
90. Factory overhead includes
A. direct labour
B. wages of machine operators
C. machine oil
D. direct material
Answer: C
91. The main aim of government accounting is
A. profit making
B. stewardship
C. competition
D. capital gain
Answer: B
92. Public accounts are audited by
A. internal auditor
B. accountant-general
C. auditor-general
D. minister
Answer: C
93. Development levy is a type of
A. tax
B. revenue
C. expense
D. asset
Answer: A
94. Capital expenditure relates to
A. salaries
B. recurring expenses
C. long-term projects
D. petty cash
Answer: C
95. Supplementary budget is made when
A. surplus exists
B. deficit is expected
C. year ends
D. revenue increases
Answer: B
96. A sole proprietorship has
A. limited liability
B. unlimited liability
C. no liability
D. shared liability
Answer: B
97. A business plan includes
A. audit report
B. examination records
C. marketing plan
D. ledger accounts
Answer: C
98. Break-even chart shows
A. expenses only
B. total cost and revenue
C. capital only
D. drawings only
Answer: B
99. Working capital is important because it
A. increases assets
B. ensures smooth operations
C. determines capital
D. increases fixed assets
Answer: B
100. The risk-bearing function of an entrepreneur refers to
A. buying materials
B. calculating cost
C. taking business risks
D. preparing accounts
Answer: C
Here are another 100 fresh JAMB-style Accounting CBT Questions and Answers — different from the previous set.These questions cover:✔ Financial Accounting
✔ Cost Accounting
✔ Government Accounting
✔ Banking
✔ Partnership
✔ Company Accounts
✔ Stock Valuation
✔ Errors & Correction
✔ Control Accounts
✔ Final Accounts
✔ Management AccountingLet's begin.
(Completely New Set)
1. Accounting is mainly concerned with
A. recording and summarizing business transactions
B. loan collection
C. tax collection
D. profit sharing
Answer: A
2. The concept that requires assets to be recorded at original cost is
A. prudence
B. cost concept
C. accrual
D. realization
Answer: B
3. Which of the following users is an external user?
A. Manager
B. Auditor
C. Employee
D. Supervisor
Answer: B
4. Which concept prevents recording personal expenses in business accounts?
A. Materiality
B. Business entity
C. Accrual
D. Consistency
Answer: B.
5. Which of the following is NOT a characteristic of useful accounting information?
A. Reliability
B. Comparability
C. Guessing
D. Relevance
Answer: C
6. Sales return is recorded in the
A. sales day book
B. returns inward journal
C. returns outward journal
D. purchase journal
Answer: B
7. Purchases return is recorded in the
A. returns inward
B. returns outward
C. cashbook
D. general journal
Answer: B
8. Credit sales are recorded in
A. cashbook
B. sales day book
C. journal proper
D. ledger
Answer: B
9. The book used to record small cash payments is
A. petty cashbook
B. journal
C. ledger
D. sales book
Answer: A
10. Carriage inwards is charged to
A. income statement
B. trading account
C. balance sheet
D. profit and loss
Answer: B
11. The double-entry principle is based on
A. one-sided entry
B. two-sided entry
C. three-sided entry
D. no entry
Answer: B
12. A debit entry increases
A. capital
B. liability
C. expense
D. revenue
Answer: C
13. A credit entry increases
A. asset
B. drawings
C. expense
D. liability
Answer: D
14. Ledger accounts are classified into
A. real, personal, nominal
B. large, small, medium
C. active, passive, neutral
D. credit, debit, balance
Answer: A
15. A trial balance shows
A. profit or loss
B. assets and liabilities
C. arithmetical correctness
D. depreciation
Answer: C
16. Depreciation is a fall in value due to
A. appreciation
B. wear and tear
C. repairs
D. revaluation
Answer: B
17. Which method uses a fixed percentage?
A. units of production
B. straight-line
C. reducing balance
D. revaluation
Answer: C
18. Scrap value refers to
A. cost of installation
B. value at end of life
C. cost price
D. sale value
Answer: B
19. Depreciation appears in the
A. cashbook
B. balance sheet
C. trial balance
D. profit and loss account
Answer: D
20. Accumulated depreciation is shown as
A. asset
B. liability
C. contra-asset
D. revenue
Answer: C
21. Gross profit is
A. sales + purchases
B. net profit – expenses
C. sales – cost of goods sold
D. stock + purchases
Answer: C
22. Net profit is transferred to
A. capital account
B. creditors
C. cashbook
D. bank statement
Answer: A
23. Drawings affect
A. stock
B. capital
C. sales
D. liability
Answer: B
24. Which is an indirect expense?
A. carriage inwards
B. wages
C. power and lighting
D. purchases
Answer: C
25. Prepaid expenses are classified as
A. current liability
B. current asset
C. fixed asset
D. capital
Answer: B
26. Debtors control account is also known as
A. purchases ledger control
B. sales ledger control
C. general ledger
D. capital account
Answer: B
27. Control accounts help in
A. reducing profit
B. detecting errors
C. preparing cashbook
D. calculating depreciation
Answer: B
28. Carriage inward does NOT appear in
A. creditors account
B. trading account
C. income statement
D. profit statement
Answer: A
29. Bad debt recovered is
A. income
B. expense
C. asset
D. liability
Answer: A
30. Provision for doubtful debt is
A. an asset
B. a liability
C. a reserve
D. an income
Answer: C
31. A single entry system lacks
A. cashbook
B. ledger
C. double entry
D. returns
Answer: C
32. Profit = closing capital – opening capital + drawings –
A. purchases
B. sales
C. additional capital
D. assets
Answer: C
33. Statement of affairs resembles
A. trading account
B. balance sheet
C. cashbook
D. income statement
Answer: B
34. Opening capital is calculated using
A. assets – liabilities
B. liability + capital
C. assets × capital
D. expenses + income
Answer: A
35. Single entry system is commonly used by
A. government
B. banks
C. small businesses
D. companies
Answer: C
36. A partnership agreement is called
A. memorandum
B. deed
C. constitution
D. resolution
Answer: B
37. Goodwill is treated as
A. current asset
B. fictitious asset
C. intangible asset
D. liability
Answer: C
38. Partners’ salaries are treated as
A. expense
B. appropriation
C. liability
D. revenue
Answer: B
39. Interest on capital is given to
A. customers
B. employees
C. partners
D. auditors
Answer: C
40. Profit sharing ratio is determined by
A. loan
B. decree
C. partnership agreement
D. capital
Answer: C
41. Shareholders are
A. creditors
B. lenders
C. owners
D. employees
Answer: C
42. Authorized capital means
A. capital in use
B. maximum capital allowed
C. borrowed capital
D. reserve capital
Answer: B
43. Dividend is paid out of
A. gross profit
B. net profit
C. capital
D. revenue
Answer: B
44. Bonus shares are issued to
A. debtors
B. creditors
C. employees
D. existing shareholders
Answer: D
45. Debentures represent
A. equity capital
B. loans
C. assets
D. revenue
Answer: B
46. Bank charges reduce
A. assets
B. liabilities
C. expenses
D. capital
Answer: A
47. Standing order means
A. regular bank payments
B. loan repayment
C. return cheque
D. bank overdraft
Answer: A
48. A dishonoured cheque is
A. paid
B. returned unpaid
C. discounted
D. destroyed
Answer: B
49. Unpresented cheques are
A. added to cashbook
B. deducted from cashbook
C. added to bank statement
D. deducted from bank statement
Answer: D
50. Cashbook debit balance means
A. bank overdraft
B. cash at bank
C. loan
D. liability
Answer: B
51. The method suitable when prices are falling is
A. FIFO
B. LIFO
C. Average
D. Replacement cost
Answer: A
52. Periodic stocktaking is done
A. daily
B. weekly
C. monthly
D. annually
Answer: D
53. Cost of goods sold =
A. sales + stock
B. opening stock + purchases – closing stock
C. sales – purchases
D. stock × cost
Answer: B
54. Mark-up is calculated on
A. cost
B. sales
C. assets
D. liabilities
Answer: A
55. Inventory is valued at
A. cost only
B. cost or NRV whichever is lower
C. selling price
D. market value
Answer: B
56. Error of omission affects
A. one account only
B. two accounts
C. no account
D. wrong side
Answer: C
57. Error of commission affects
A. correct account
B. wrong account of same class
C. wrong trial balance
D. suspense account
Answer: B
58. Error of principle means
A. wrong amount
B. wrong posting
C. posting to wrong account type
D. omission
Answer: C
59. Trial balance disagreement leads to
A. suspense account
B. capital account
C. goodwill
D. depreciation
Answer: A
60. Errors that cancel each other are
A. commission
B. compensating
C. omission
D. principle
Answer: B
61. Fixed cost per unit decreases when output
A. decreases
B. increases
C. remains same
D. is negative
Answer: B
62. Prime cost =
A. factory cost + overhead
B. direct material + direct labour
C. sales – cost of sales
D. variable cost – fixed cost
Answer: B
63. Cost of production includes
A. prime cost + overhead
B. selling cost
C. distribution cost
D. administrative cost
Answer: A
64. Variable cost changes with
A. salaries
B. output
C. capital
D. assets
Answer: B
65. Break-even point occurs when
A. loss = cost
B. profit = revenue
C. fixed cost = variable cost
D. total revenue = total cost
Answer: D
66. Government revenue is obtained from
A. salaries
B. grants and taxes
C. capital
D. overhead
Answer: B
67. Recurrent expenditure includes
A. constructing roads
B. buying equipment
C. salaries and wages
D. long-term projects
Answer: C
68. Votes are allocations in
A. budget
B. ledger
C. cashbook
D. balance sheet
Answer: A
69. Public debt refers to
A. taxes paid
B. loans owed by government
C. capital
D. assets
Answer: B
70. Auditor-General reports to the
A. executive
B. judiciary
C. legislature
D. public
Answer: C
71. A sole proprietor enjoys
A. limited liability
B. unlimited liability
C. no liability
D. shared liability
Answer: B
72. The reward for risk-taking in business is
A. salary
B. wage
C. profit
D. bonus
Answer: C
73. One advantage of partnership is
A. unlimited capital
B. shared risks
C. no disagreement
D. no profit sharing
Answer: B
74. A business plan includes
A. ledger accounts
B. marketing strategy
C. depreciation
D. profit only
Answer: B
75. Break-even chart shows
A. cost and revenue
B. liabilities
C. expenses only
D. capital account
Answer: A
76. The accountant who checks final accounts is
A. internal auditor
B. external auditor
C. cashier
D. clerk
Answer: B
77. Capital expenditure provides benefit for
A. one year
B. short term
C. long period
D. daily use
Answer: C
78. Revenue expenditure is for
A. daily operations
B. long-term projects
C. asset purchase
D. improvement
Answer: A
79. Net assets =
A. capital – liabilities
B. assets – liabilities
C. capital + assets
D. revenue – expenses
Answer: B
80. Accrual concept recognizes
A. cash only
B. expenses and income when incurred
C. income when received
D. cash-basis only
Answer: B
81. Provision for depreciation appears in
A. cashbook
B. balance sheet
C. trial balance
D. capital account
Answer: B
82. Interest on loan is
A. asset
B. income
C. expense
D. capital
Answer: C
83. A contra entry affects
A. cashbook only
B. ledger only
C. bank statement
D. trial balance
Answer: A
84. Hire purchase means buying
A. with immediate full payment
B. gradually with installment
C. free of charge
D. on credit only
Answer: B
85. Cost of sales is shown in
A. profit and loss
B. balance sheet
C. trial balance
D. capital account
Answer: A
86. Margin =
A. profit ÷ cost
B. profit ÷ sales
C. sales × profit
D. cost ÷ sales
Answer: B
87. Mark-up =
A. profit ÷ cost
B. profit ÷ sales
C. sales ÷ profit
D. cost × sales
Answer: A
88. Operating expense excludes
A. salaries
B. rent
C. depreciation
D. cost of goods sold
Answer: D
89. Opening stock is
A. first stock of year
B. last stock of year
C. new stock
D. goods returned
Answer: A
90. Ledger folio means
A. page number
B. amount
C. balance
D. date
Answer: A
91. A trial balance with equal totals may still contain errors because
A. trial balance is wrong
B. errors of omission exist
C. assets are wrong
D. liabilities are wrong
Answer: B
92. Consignment goods are
A. sold on installment
B. goods sent to agent
C. goods owned by consignee
D. stolen goods
Answer: B
93. Discount received is
A. income
B. expense
C. asset
D. liability
Answer: A
94. Discount allowed is
A. income
B. expense
C. capital
D. reserve
Answer: B
95. Purchase of machinery is
A. revenue expenditure
B. capital expenditure
C. prepaid expenditure
D. deferred expenditure
Answer: B
96. A bill of exchange is
A. request to pay
B. order to pay
C. permission to pay
D. invoice
Answer: B
97. Debtors are
A. creditors
B. customers owing money
C. owners
D. shareholders
Answer: B
98. Credit note is issued for
A. credit sale
B. goods returned
C. cash sale
D. wage payment
Answer: B
99. Trial balance is prepared
A. before ledger
B. after ledger
C. before journal
D. after cashbook
Answer: B
100. The accountant’s final work is
A. stock valuation
B. preparing financial statements
C. cashbook balancing
D. bank reconciliation
Answer: B
