Accounts Past Questions | West African Examinations Council (WAEC)

Question 21

Which of the following items is not contained in the Receipts and Payments Account?

Options

A) Subscription paid in advance

B) stock paid for in advance

C) outstanding wages and salaries

D) donations

The correct answer is B.

Question 22

The accounting concept underlying the treatment of personal expenses of the business owner as drawing is

Options

A) periodicity

B) accrual

C) entity

D) materiality

The correct answer is C.

Question 23

The sum of direct cost in a manufacturing account is

Options

A) production cost

B) prime cost

C) total cost

D) finance cost

The correct answer is B.

Question 24

When an asset is sold, the entries for the accumulated depreciation are; debit

Options

A) assets disposal account; credit provision for depreciation account

B) provision for depreciation account; credit asset disposal account

C) fixed asset account; credit asset disposal account

D) asset disposal account; credit fixed asset account

The correct answer is A.

Question 25

A petty cash account has an imprest of D28,000. The account has a debit balance of D5,000. How much cash is needed to restore the imprest?

Options

A) D33,000

B) D28,000

C) D23,000

D) D5,000

The correct answer is B.

Question 26

In a not-for-profit making organization, when the total income is less than the total expenditure, the difference is a

Options

A) surplus

B) shortfall

C) loss

D) deficit

The correct answer is D.

Question 27

The concept that states that a business should not lay claim to any profits before it is earned with reasonable certainty is

Options

A) constitency concept

B) prudence concept

C) accrual concept

D) going corncern cocept

The correct answer is C.

Question 28

When shares are issued above their nominal value, the excess above the nominal value is

Options

A) credited to profit and loss account

B) debited to share premium account

C) credited to share capital account

D) credited to share premium account

The correct answer is B.

Question 29

Shares issued below nominal value are referred to as shares at

Options

A) premium

B) discount

C) face value

D) cumulative value

The correct answer is B.

Question 30

Use the following information to answer the question given.

$\begin{array}{cc}\text{Capital}& \text{Le}\\ \text{Aye}& 20,000\\ \text{Bee}& 30,000\\ \text{Drawings}& \\ \text{Aye}& 8,000\\ \text{Bee}& 2,000\\ \text{Profit for the year}& 2,000\\ \text{Interest on capital - 6\%}& \\ \text{Interest on drawings - 10\%}& \end{array}$

Profit sharing is in the ratio of capital. The divisible profit is

Options

A) Le 14,000

B) Le 12,000

C) Le 10,000

D) Le 8,000

The correct answer is D.

Question 31

Options

A) Le 6,000

B) Le 4,800

C) Le 4000

D) Le 3,200

The correct answer is D.

Question 32

Use the following information to answer the question given.

Profit sharing is in the ratio of capital. Bee's share of profit is

Options

A) Le 8,000

B) Le 6,000

C) Le 4,800

D) Le 3,200

The correct answer is C.

Question 33

The accounting ratio used to measure the average number of days for which suppliers remain unpaid is

Options

A) stock turnover

B) creditor's payment period

C) debtors collection period

D) return on capital employed

The correct answer is A.

Question 34

When thee purchase consideration exceeds the value of business, the difference is

Options

A) profit

B) discount

C) goodwill

D) reserve

The correct answer is C.

Question 35

The primary classification of government expenditure is based on

Options

A) programs

B) fund

C) activity

D) project

The correct answer is B.

Question 36

An example of input devices of a computer is

Options

A) an optical character reader

B) a graph plotter

C) a visual display unit

D) a printer

The correct answer is B.

Question 37

The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is

Options

A) business entity

B) materiality

C) dual aspect

D) realization

The correct answer is D.

Question 38

A company made a net profit of ₦2,000,000 for the year and its net profit percentage is 25%. What is the total sales for the year?

Options

A) ₦8,000000

B) ₦6,00000

C) 800,000

D) ₦500,000

The correct answer is D.

Question 39

Which of the following information is recorded in the returns outwards book?

Options

A) goods purchased on credit and susequently returned to suppliers

B) fixed asset bought on credit and subsequently returned to supplier

C) cash payment received from a customer and subsequently returned to supplier

D) goods sold to a customer and subsequently returned to the business

The correct answer is A.

Question 40

Options

A) D408,000

B) D346,000

C) D284,000

D) D62,000

The correct answer is C.

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