20 Senior Secondary School 3 Second Term Bookkeeping questions with options and answers:
Question: How does the Straight-line method calculate depreciation?
A) Based on the asset’s market value
B) Allocates an equal amount of depreciation each year
C) Front-loads depreciation in the early years
D) Calculates depreciation based on usage
Answer: B) Allocates an equal amount of depreciation each year
Question: What does the term “Accounts Receivable” represent in the ledger?
A) Money owed by the business to suppliers
B) Money owed to the business by customers
C) Cash on hand
D) Money invested by the owner
Answer: B) Money owed to the business by customers
Question: How is the cost of goods sold calculated?
A) Opening stock + Purchases – Closing stock
B) Opening stock – Purchases + Closing stock
C) Opening stock x Purchases – Closing stock
D) Opening stock / Purchases + Closing stock
Answer: A) Opening stock + Purchases – Closing stock
Question: What is the purpose of the “Return Inwards” account?
A) Records goods returned by customers
B) Records goods returned to suppliers
C) Tracks sales revenue
D) Manages petty cash
Answer: A) Records goods returned by customers
Question: What does the term “Double-entry” mean in accounting?
A) Recording transactions twice
B) Using two different types of accounts
C) Entering transactions on two separate days
D) Recording the dual effect of each transaction
Answer: D) Recording the dual effect of each transaction
Question: How does the Accumulated Depreciation account appear in the balance sheet?
A) As an asset
B) As a liability
C) As a contra-asset
D) As an expense
Answer: C) As a contra-asset
Question: What is the purpose of the “Prepaid Income” account?
A) Records income received in advance
B) Records income earned but not yet received
C) Records expenses paid in advance
D) Records expenses incurred but not yet paid
Answer: A) Records income received in advance
Question: When is the Weighted Average method used in valuing inventory?
A) When there are frequent price changes
B) When inventory levels remain constant
C) When using perpetual inventory system
D) When there are seasonal fluctuations
Answer: A) When there are frequent price changes
Question: What does the term “Trial Balance” help to identify?
A) Net Profit
B) Errors in the ledger
C) Cost of Goods Sold
D) Accumulated Depreciation
Answer: B) Errors in the ledger
Question: How does the Income Summary account contribute to the closing process?
A) Records all income transactions
B) Serves as a temporary account to close revenue and expense accounts
C) Calculates net profit
D) Tracks long-term liabilities
Answer: B) Serves as a temporary account to close revenue and expense accounts
Question: What is the purpose of the “Imprest System” in Petty Cash management?
A) Allows unlimited spending
B) Requires periodic reimbursement to maintain a constant balance
C) Tracks all business transactions
D) Eliminates the need for petty cash
Answer: B) Requires periodic reimbursement to maintain a constant balance
Question: How does the Diminishing Balance method calculate depreciation?
A) Allocates an equal amount of depreciation each year
B) Front-loads depreciation in the early years
C) Reduces the asset’s book value by a fixed percentage each year
D) Calculates depreciation based on usage
Answer: C) Reduces the asset’s book value by a fixed percentage each year
Question: What is the purpose of the “Opening Entry” in the accounting cycle?
A) Records the opening balance of all accounts
B) Opens a new ledger account
C) Adjusts the closing stock
D) Closes all revenue accounts
Answer: A) Records the opening balance of all accounts
Question: How does the perpetual inventory system differ from the periodic inventory system?
A) Perpetual system requires physical counts
B) Periodic system updates inventory after each transaction
C) Perpetual system provides real-time inventory information
D) Periodic system eliminates the need for an inventory ledger
Answer: C) Perpetual system provides real-time inventory information
Question: What is the purpose of the “Discount Allowed” account?
A) Records discounts received from suppliers
B) Records discounts offered to customers
C) Tracks sales revenue
D) Manages bad debts
Answer: B) Records discounts offered to customers
Question: How is the “Interest Received” entry recorded in the Cash Book?
A) Debit side
B) Credit side
C) In the Bank Reconciliation Statement
D) In the Journal
Answer: A) Debit side
Question: What is the significance of the “Conservatism Principle” in accounting?
A) Recognizes revenue only when it is earned
B) Emphasizes recording transactions at their original cost
C) Prefers understating assets and income to avoid overstatement
D) Requires presenting financial statements in a consistent manner
Answer: C) Prefers understating assets and income to avoid overstatement
Question: How does the “Matching Principle” guide the recognition of expenses in accounting?
A) Recognizes expenses only when cash is paid
B) Matches expenses with the revenue they generate
C) Records expenses in the period they are incurred
D) Delays recognition of expenses until the end of the fiscal year
Answer: B) Matches expenses with the revenue they generate
Question: What is the purpose of the “Drawing Account” in the ledger?
A) Records owner’s withdrawals from the business
B) Records investments made by the owner
C) Tracks sales revenue
D) Manages bad debts
Answer: A) Records owner’s withdrawals from the business.
FAQs
What topics are usually covered in SS3 second term bookkeeping past questions?
The questions often cover areas such as ledger accounts, trial balance, final accounts, adjustments (accruals and prepayments), depreciation, bank reconciliation statements, petty cash, and errors and their rectification. Students are expected to demonstrate both understanding of principles and practical application in journal entries and account preparation.
How can I effectively use past questions to prepare for my SS3 bookkeeping exams?
To maximize past questions, start by attempting them under timed conditions to simulate exam settings. After solving, review the solutions carefully, paying attention to mistakes and alternative methods. Focus on recurring question patterns and ensure you understand the reasoning behind each adjustment or account preparation rather than memorizing answers.
Are answers to SS3 second term bookkeeping past questions standardized?
While core accounting principles remain consistent, presentation formats may vary slightly depending on the examination body. It is important to follow the proper layout for ledger accounts, trial balances, and final accounts as required by your school or examination guidelines to earn maximum marks.
Where can I find reliable SS3 second term bookkeeping past questions and answers?
Past questions can be found through school libraries, teachers’ compilations, examination bodies like WAEC, NECO, and JAMB, and reputable educational websites or e-books. Using these resources alongside textbooks helps reinforce understanding and improves accuracy in answering exam-style questions.
Also Read: SS2 First Term Commerce Past Questions and Answers
