NECO Accounting Questions and Answers 2023. I will be showing you NECO Financial Accounting objective and theory questions for free. You will also understand how NECO Accounting questions are set and many more examination details.
The National Examination Council is an examination body that set questions annually from areas student should, after their studies in senior secondary school, be able to write and pass without stress.
NECO Accounting answers and questions Objectives and Essay will be provided here in detail and the authenticity of this NECO 2023 Financial Accounting solutions to questions have been tested and confirmed to be sure.
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NECO Accounting Essay And Objective Questions and Answers 2023 (EXPO)
The 2023 NECO Financial Accounting expo will be posted here during the NECO Accounting examination. Keep checking and reloading this page for the answers.
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Today’s NECO Accounting OBJ Answers:
Bank reconciliation statement is a document that compares the balance of a company’s cash book (record of transactions) with the balance shown on the bank statement (provided by the bank). It helps identify any differences or discrepancies between the two balances.
(i) Outstanding checks: Checks issued by the company that have not yet been presented for payment by the recipients.
(ii) Deposits in transit: Cash or checks received by the company that have not yet been recorded by the bank.
(iii) Bank charges and fees: Charges imposed by the bank for services or penalties that have not yet been recorded in the cash book.
(iv) Bank errors: Mistakes made by the bank in recording transactions, such as posting incorrect amounts or misplacing transactions.
(v) Unrecorded transactions: Transactions that have been made by the company but have not yet been recorded in the cash book or on the bank statement.
(i) Error of principle: An error of principle occurs when a transaction is recorded in a way that violates accounting principles or concepts. For example, recording a personal expense as a business expense or treating a capital expenditure as revenue expenditure.
(ii) Error of compensation: An error of compensation happens when two or more errors are made in such a way that they offset each other, resulting in the correct overall balance. For instance, overestimating one expense and underestimating another expense by the same amount, resulting in the correct net balance.
(iii) Error of omission: An error of omission occurs when a transaction or entry is completely left out or not recorded in the books of accounts. This can happen unintentionally or due to oversight, resulting in an inaccurate representation of the financial position.
(iv) Error of commission: An error of commission takes place when an incorrect amount is recorded or an entry is made in the wrong account. It can be a result of a mistake in calculation, misinterpretation of information, or a clerical error.
(v) Error of complete reversal of entries: An error of complete reversal of entries occurs when the debits and credits are reversed in their entirety. For example, if a debit entry is recorded as a credit and a credit entry is recorded as a debit. This type of error can lead to significant discrepancies in the financial statements.
(i) Donations: Non-profit organizations often rely on donations from individuals, corporations, and foundations to fund their operations and programs. These donations can be in the form of cash, assets, or in-kind contributions.
(ii) Grants: Non-profit organizations may receive grants from government agencies, private foundations, or other organizations. These grants are typically awarded for specific projects or initiatives and can provide significant funding for the organization.
(iii) Program Fees: Non-profit organizations may charge fees for the services or programs they offer. These fees can include membership fees, program fees, or ticket sales for events. This income helps support the organization’s activities and may be used to cover operational costs.
(i) Limited Scope: Payment and receipt accounts only provide information about cash transactions and do not capture non-cash transactions or other financial activities of the organization.
(ii) Lack of Detail: Payment and receipt accounts provide a summary of cash inflows and outflows, but they do not provide detailed information about individual transactions, such as the purpose or nature of the payment or receipt.
(iii) Timing Differences: Payment and receipt accounts may not accurately reflect the timing of cash flows, as transactions may be recorded when cash is received or paid, rather than when the economic activity actually occurs.
(iv) Limited Analysis: Payment and receipt accounts do not provide sufficient information for in-depth financial analysis or decision-making. Additional financial statements and reports are needed for a comprehensive understanding of the organization’s financial position and performance.
(v) Potential Misrepresentation: Payment and receipt accounts can be manipulated or misreported, leading to inaccurate financial information. It is important to have proper internal controls and financial oversight to ensure the accuracy and integrity of payment and receipt accounts.
(i) Taxes: The federal government collects revenue through various taxes, including income tax, corporate tax, sales tax, and excise tax. These taxes are imposed on individuals, businesses, and certain goods and services.
(ii) Government-Owned Assets: The federal government generates revenue by leasing or selling government-owned assets, such as land, buildings, and natural resources. This includes activities such as leasing public lands for commercial use or selling mineral rights for resource extraction.
(i) Source documents: Source documents are the original records or evidence of a financial transaction. Examples include invoices, receipts, purchase orders, bank statements, and contracts. They provide detailed information about the transaction, such as the date, amount, parties involved, and description of the transaction.
(ii) Debit note: A debit note is a document issued by a buyer to a seller to request a credit adjustment or a refund for goods or services that were overcharged, damaged, or returned. It serves as a record of the buyer’s claim against the seller and is used to adjust the accounts payable or request a refund.
(iii) Prime entry: Prime entry refers to the initial recording of a financial transaction in the books of accounts. It involves capturing the relevant details of the transaction, such as the date, amount, accounts affected, and description. Prime entry is the first step in the accounting process and serves as the basis for further accounting entries and financial reporting.
(i) Objectives: The objective of government accounting is primarily to ensure transparency, accountability, and stewardship of public funds While Private sector accounting, on the other hand, focuses on profitability, shareholder value, and meeting the needs of stakeholders.
(ii) Reporting Standards: Government accounting often follows specific accounting standards and guidelines tailored to the public sector, such as the International Public Sector Accounting Standards (IPSAS) While Private sector accounting generally adheres to International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP) specific to the country or region.
(i) Recording Sales Transactions
(ii) Depreciation of Fixed Assets
NECO Accounting Questions and Answers For Practice
The questions below are not exactly 2022 NECO Financial Accounting questions and answers but likely NECO Accounting repeated questions and answers.
These questions are strictly for practice. The 2022 NECO Accounting expo will be posted on this page on the day of the NECO Accounting examination. Keep checking and reloading this page for the answers.
1. The officer responsible for ascertaining whether all public expenditures and appropriations are in time with the approved guideline is the
C. Auditor General
ANSWER: C (Auditor General)
2. The cash basis of accounting requires the recognition of revenue only when they are
A. sent Out
ANSWER: D (Received)
3. Responsibility accounting is particularly concerned with
A. variable cost
B. fixed cost
C. controllable costs
D. uncontrollable costs
ANSWER: C (Controllable costs)
4. Earnings per share is a measure of
ANSWER: B (Profitability)
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How To Pass NECO Financial Accounting Examination
The National Examination Council (NECO) is a body in charge of the Senior Secondary School Certificate Examination.
The Certificate offered here is a very important credential that awards or certifies the completion of your Secondary School Education.
It is a major document that qualifies you into any tertiary institution and is equally a major factor affecting admission today.
For this reason, every Student preparing for this examination NECO 2023 is preparing for something great.
Care should be taken when participating in this examination in other not to come out with bad grades. The following are the key answers to NECO Accounting 2023.
1. Be Determined to Pass
The NECO 2023 Accounting is mainly for those who have made up their mind to pass it with a good grade.
Any candidate who, at this point in time, has not made up his or her mind to make the excellent grade in the forthcoming NECO 2023 Accounting is actually not ready to pass.
Your mind should be ready for the task ahead, do not follow lazy friends who believe in a miracle on the day of the exams, stay positive and study your books.
2. Have self-confidence
Self-confidence is another factor that affects a candidate’s performance. Promise to do it all by yourself and everything will come out very simple for you.
It is a well-known fact that many students cancel the right answers just to copy the wrong ones because of a lack of self-confidence. Study and pray hard and you are the miracle for the day.
3. Start Studying Early
Studying is very important in your life as a student. NECO is a very simple Exam to deal with as long as studies are involved. Studying is one thing and studying on time is another thing entirely.
Do not wait for the NECO 2023 Accounting exam to be so close before you start studying for it. Late preparation will not really help you. When you start studying early there will be time for you to revise before the exams.
2. Make Use the NECO 2023 Syllabus
Using the NECO 2023 syllabus is very essential as it will guide you on major topics to cover. Studying without the Syllabus will make you focus on unnecessary topics that will not appear in the exams.
Also, most of the Accounting topics you have not done in class are there in the NECO syllabus.
3. Pray to God Your Creator
Many think that they can do it all alone without God. The Almighty God is your creator, seek His assistance and He will never fail to help you. Your faith in God determines your success. God is there for you, call upon Him.
4. Adhere to exam instructions.
Any student who is not ready to adhere to the examination conducts is planning to fail. The majority of NECO Candidates that have their results held are those that were not ready to follow the exam instructions.
5. Use Your Time Wisely.
It is a well-known fact that NECO Accounting requires a lot of time, manage the little time given to you wisely. Consider the number of questions you are to answer and the time given so that you can time wisely.
6. Be punctual to the examination venue
Punctuality matters during the exams. Go to the exam venue early so that your brain can settle for the task. Rushing to the exam hall will make you unstable for the exam and can prone you to so many mistakes.
Take time to go through the exam question paper before you start answering. NECO Accounting Questions and Answers
If you have any questions about the 2023 NECO Accounting questions and answers, do well to let us know in the comment box.
Last Updated on August 10, 2023 by Admin