NECO Book keeping Questions and Answers 2024 (100% Sure) Theory & Obj Solution

The National Examination Council (NECO) Bookkeeping exam is a vital test for Nigerian students aiming to secure an excellent grade in their NECO exams. In this article, we provide sample questions, solutions for both theory and objective sections, and some strategic tips to help you excel in your 2024 NECO Bookkeeping exam. Please note that these questions are meant to guide and help you understand the structure and format of NECO Bookkeeping questions rather than serve as exact questions for the exam.

NECO Bookkeeping Objective Questions (Sample)

1. What is the primary objective of bookkeeping?

   • A) Profit maximization
   • B) Record keeping
   • C) Tax evasion
   • D) None of the above
   • Answer: B) Record keeping

2. The book where all daily financial transactions are recorded is called the:

   • A) Ledger
   • B) Journal
   • C) Balance Sheet
   • D) Trial Balance
   • Answer: B) Journal

3. Assets that are expected to be converted into cash within one year are classified as:

   • A) Fixed Assets
   • B) Long-term Liabilities
   • C) Current Assets
   • D) Non-Current Liabilities
   • Answer: C) Current Assets

4. The double-entry system of bookkeeping means:

   • A) Every transaction affects two accounts
   • B) Recording only income transactions
   • C) Entries are made only once in the books
   • D) None of the above
   • Answer: A) Every transaction affects two accounts

5. In bookkeeping, capital refers to:

   • A) Owner’s financial contribution to the business
   • B) The company’s profits
   • C) All the business’s debts
   • D) None of the above
   • Answer: A) Owner’s financial contribution to the business

NECO Bookkeeping Theory Questions (Sample)

Question 1

Explain the following accounting terms:

1. Ledger
2. Trial Balance
3. Assets

Answer:

1. Ledger: The ledger is a book or digital record where all the individual accounts related to assets, liabilities, income, expenses, and equity are maintained. It serves as the central record of all financial transactions.
2. Trial Balance: A trial balance is a financial statement prepared at the end of an accounting period. It lists all the debit and credit balances of each account to ensure that the books are balanced. If the total debits equal total credits, it implies that the entries are accurately recorded.
3. Assets: Assets refer to the resources owned by a business that have economic value and can be converted into cash. Examples of assets include cash, inventory, equipment, buildings, and investments.

Question 2

Define the concept of double-entry bookkeeping and provide an example.

Answer: The double-entry bookkeeping system is based on the principle that every financial transaction has equal and opposite effects in at least two different accounts. This means that for every debit entry, there must be a corresponding credit entry. The system helps in maintaining the balance of accounts and provides a detailed record of all financial activities.

Example: If a company purchases office equipment for $500 and pays in cash, the transaction would be recorded as follows:

• Debit the “Office Equipment” account by $500 (increasing asset).
• Credit the “Cash” account by $500 (decreasing asset).

This double-entry ensures the balance in the accounting system.

Question 3

What are the key differences between fixed assets and current assets?

Answer:

1. Fixed Assets: These are long-term assets that a business uses over several years. Examples include land, buildings, machinery, and vehicles. Fixed assets are not easily converted to cash within a year and are used in the production of goods or services.
2. Current Assets: These are short-term assets that can be easily converted into cash within one year. Examples include cash, accounts receivable, and inventory. Current assets are vital for the daily operations of the business.

Tips for Excelling in NECO Bookkeeping 2024

1. Understand Fundamental Concepts: Focus on the basic principles of bookkeeping, such as double-entry, assets, liabilities, and capital. These are frequently tested concepts.
2. Practice Past Questions: Reviewing past NECO Bookkeeping questions will help you become familiar with the question format and difficulty level.
3. Time Management: During the exam, allocate time wisely to ensure you answer both theory and objective questions within the allotted time.
4. Review Accounting Terms and Definitions: Bookkeeping exams often test knowledge of fundamental terms. Make sure you understand definitions and can apply them.

FAQs

1. Q: What is the best way to prepare for the NECO Bookkeeping exam?

   • A: Start by understanding key bookkeeping concepts and practicing with past questions. Reviewing terms and definitions is crucial, as these are common in both theory and objective sections.

2. Q: Are past questions helpful for the NECO Bookkeeping exam?

   • A: Yes, past questions help you understand the question pattern and familiarize yourself with common bookkeeping topics covered in the exam.

3. Q: How is the NECO Bookkeeping exam structured?

   • A: The exam typically includes objective questions (multiple-choice) and theory questions, where you must explain bookkeeping concepts and solve accounting problems.

4. Q: What is the passing score for NECO Bookkeeping?

   • A: Generally, you need a score of at least 50% to pass NECO exams, but a higher score will give you a better overall grade.

5. Q: Can I use calculators during the NECO Bookkeeping exam?

   • A: Yes, calculators are generally allowed for the NECO Bookkeeping exam, but confirm with your examination center.

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For additional resources and practice questions, visit the official NECO website or educational platforms like myschool.ng and nigerianscholars.com.