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THEORY QUESTIONS

WAEC SYLLABUS

1. External users of accounting information include.

A. Employers.

B. Management.

C. Bankers.

D. Directors

2. Every asset should have……

A. A non-monetary value.

B. Tangible and intangible qualities.

C. Monetary cost and future benefit.

D. an inadequate monetary value.

3. Which of the following are impersonal accounts? I. investment ii. Creditors’ iii. Premise IV. Debtors v. Salaries.

A. I. iii and IV.

B. I, iii and v.

C. ii and IV.

D. iii and v.

4. Nwoye buys and pays by chegue. The entry in the books of Nwoye is debit.

A. Purchase credit chegue.

B. Purchase: Credit Bank.

C. Bank: Credit Purchases.

D. Chegue: Credit purchases.

5. A bank statement shows overdraft of GH¢ 190,000. Kofi, a debtor, paid 400,000 into the account. The new bank balance is?

A. GH¢590,000

B. GH¢590,000overdrawn.

C. GH¢210,000.

D. GH¢210,000overdraft

ANSWERS

6. Which of the following errors are errors of omission? i. A chaque paid to Adom debited to Adam’s account ii. Credit sales to Eva credited to sales account but debited to Eve’s account. Iii. Furniture repairs debited to furniture account IV. Credit purchases from Manu credited to Manu’s account.

A. I and ii.

B. I and IV.

C. II and IV.

D. III and IV.

7. A petty cash account has an impress of GH¢6,000. If GH¢2,000 were left, how much will be re-imbrued at the end of the period?

A. GH¢8,000

B. GH¢6,0200

C. GH¢4,000

D. GH¢2,000

8. Cash paid to jake, ₦2,500, was entered on the credit side of his account and debited to cash accost. This is an error of.

A. Principle.

B. Commission.

C. Complete reversal of entries.

D. Cringing entry.

9. One of the purchases invoices of Mr. Dauda showed D96.240 less 121/2% trade discount and cash discount of 20%. Since Mr. Dauda paid the amount due within the credit period, the amount paid is?

A. D77.369

B. D73,157

C. D67,368

D. D63,157

10. Bank reconciliation statement is prepared to reconcile the differences between.

A. Bank statement and credit transfers.

B. Cash book and bank transfers.

C. Bank statement and cash transfers.

D. Cash book and bank statement.

ANSWERS

11. Which of the following items of expenses involves actual cash payment?

A. Discount allowed.

B. Provision for Depreciation.

C. Carriage outwards.

D. Allowed.

12. In the preparation of trading account of Omuya Ltd, the company includes credit sales ₦18,000 made during the year. The concept guide this treatment is the.

A. Materiality concept.

B. Dual aspect concept.

C. Matching Concept.

D. Money measurement concept.

13. In accounting context, purchases refer to?

A. Goods bought and paid for.

B. Goods bought for resales only.

C. Goods bought on credit only.

D. Goods bought to be used in the firm only.

14. Which of the following items is a current liability?

A. Stock of raw materials.

B. Cash in hands.

C. Bill payable.

D. Cash at bank.

15. The balance sheet is prepared to reveal.

A. The result of the operations for the period under review

B. The financial position on the business.

C. The arithmetical accuracy of the ledger account.

D. The accruals and payments.

ANSWERS

16. The excess of cost of goods sold over net sales is.

A. Gross profit.

B. Gross loss.

C. net profit.

D. Net loss

Using the following information to answer questions 17 and 18

.................................................................................................₦

Rent prepaid 1/10/2014 .............................................................600

Rent paid31/12/2141 ...............................................................3,000

Rent prepaid 31/12/2014 ...........................................................400

17. Rent for 2014 chargeable to the profit and loss account is

A. ₦4,000.

B. ₦ 3,200

C. ₦ 3,000

D. ₦ 2,800

18. The balance sheet as at 31STDecember, 2014 will show.

A. Current asset of ₦600.

B. Current asset of ₦400.

C. Current Liability of ₦400

D. Current asset of ₦600

19. Which of the following would result from an increase in the provision for doubtful debts?

A. A decrease in gross profit.

B. a decreases in Net profit.

C. An increase in gross profit.

D. An increase in Net profit.

Use the following information to answer questions 20 to 21

-----------------------------------------------------------------------------------L’e

Acquisition cost of computers ---------------------------------------80.000

Installation cost -----------------------------------------------------------20,000

Estimated residual value ------------------------------------------------4,000

Estimated useful life ----------------------------------------------------5 years

20. The depreciable value of computer is?

A. L’e 80,000

B. L’e 96,000.

C. L’e 100,000.

D. L’e 104,000

ANSWERS

21. The total costs of the computers is

A. L’e 80,000

B. L’e 96,000.

C. L’e 100,000.

D. L’e 104,000

22. Which of the following expenses constitutes prime cost? I. Direct Labor cost. II. Factory overheads. III. Hiring of Machine for production. IV. Warehouse rent.

A. I and II only.

B. I and II only.

C. I, II, and III only.

D. I, II and IV only.

23. Partly manufactured goods are treated in the balance sheet of a manufactured company as.

A. Current asset.

B. Fixed asset.

C. Current Liability.

D. Long term Liability.

Use the following information to answer questions24 to 25

---------------------------------------------------------------------D

Cash purchase ---------------------------------------------29,641

Creditors 1/1/14 ---------------------------------------------2,473

Creditors 31/12/14 ------------------------------------------3,117

Cash paid to creditors --------------------------------127,345

Discount received -----------------------------------------4,211

24. The credit bale is.

A. D 161,841.

B. D 156,986.

C D 134,673.

D. D 132,200

25. The total purchase is?

A. D 161,841.

B. D 156,986.

C D 134,673.

D. D 132,200

ANSWERS

26. Offei. A petty trader, sold goods for GH¢ 36,240. The goods profit being 331/2% on cost. What was the cost price?

A. GH¢ 45,300

B GH¢ 28,992

C. GH¢27,180

D. GH¢24,160

27. Which of the following is a credit item in an income and expenditure account?

A. Electricity

B. Donation.

C. Stationary

D. Bar suppliers.

28. Purchases of fixtures and fittings by a club is recorded in the/

A. Receipt and payments Account only.

B. Income and payment Expenditure.

C. Receipt and payments Account and balance sheet.

D. Income and Expenditure Account and balance sheet.

29. The concept which states that the affairs of a business are to be treated as being separate from the private activities of the owner is.

A. Realization concept.

B. Business entity concept.

C. Cost concept.

D. Dual aspect concept.

30. Where fixed capital are maintained in a partnership, share of profit are.

A. Credited to partners capital accounts.

B. Credited to partners current accounts.

C. Debited to partners capital accounts.

D. Debited to partners current account.

ANSWERS

31. In the absence of s partner agreement, additional capital contributions by partners attract interest of.

A. 5%

B.10%

C. 12%

D.15%

32. In creating a partnership account, interest o drawings is debited to current accounts and credited to.

A. Capital Account.

B. Appropriation Account.

C. Drawings Account.

D. Profit and loss Account.

33. When allotments have been fully paid, subscribers are referred t as.

A. Allotters.

B. Applicants.

C. Non-members.

D. Shareholders.

Use the following information to answer question34 to 36.

Oruna Ltd issued 300,000 ordinary shares at ₦1.00 each. Applications were received for 200,000 shares and all those who applied paid in full.

34. The subscribed share capital is.

A. ₦300,000

B. ₦250,000

C. ₦200,000

D. ₦150,000

35. The unsubscribed share capital is.

A. ₦300,000

B. ₦200,000

C. ₦150,000

D. ₦100,000

ANSWERS

36. The Authorized share capital is.

A. ₦300,000

B. ₦250,000

C. ₦200,000

D. ₦150,000

37. The Branch Current Account records.

A. Head office transitions with the Branch.

B. Branch transactions with the head office.

C. Goods sent to branch at selling price.

D. Cash received from branch sales.

38. The entries from credit sales at branch where the Head Office keeps all records are Debit

A. Branch Stock Account: Credit Branch Debtors Account.

B. Branch Debtors Account: Creditors Branch Stock Account.

C. Branch debtors Account: Credit Branch Debtors Account.

D. Branch Adjustment Account: Credit Branch Debtors Account.

39. The cost of goods returned by branch to head office is debited to.

A. Branch Adjustment Account.

B. Goods sent to Branch Account.

C. Branch Stock Account.

D. Branch Profit and Loss Account.

40. Which of the following is a source of local government revenues?

A. Excise Duties.

B. Market Duties.

C. Import Duties.

D. Loans and Grants

ANSWERS

41. The transfer of money from one sub-head to another in the public sector is?

A. Budgeting.

B. Allocation.

C. Virement.

D. Vote.

42. The total of the received column in the three column cash book is?

A. Debited to Discounts Received Account

B. Credited to Discounts Received Account

C. Debited to Discounts Allowed Account

D. Credited to Discounts Allowed Account

43. Which of the following expenses is apportioned between departments based on sales?

A. Discount Received.

B. Electricity.

C. Carriage inwards.

D. Carriage outward.

44. In the purchase of a business, a buyer has paid more than the value of the net assets of the business. The excess payment is referred to as?

A. Bonus.

B. Goodwill.

C. Net Profit.

D. Premium.

45. Assets which are readily convertible into cash are termed as.

A. Liquid Assets.

B. Fixed Assets.

C. Intangible Assets.

D. Tangible Assets.

ANSWERS

46. A loan to a company under the company’s seal is

A. Fixed Deposit.

B. Mortgage.

C. Bond.

D. Debenture.

47. Debts that a firm is unable to recover are debited to Bab Debts Account credited to.

A. Suppliers Account.

B. Sales Account.

C. Customers Account.

D. Cash Account

48. When a fixed asset is disposed off, the accounting entries to write off the asset are debit.

A. Profit and Loss Account, Credit Asset Disposal Account.

B. Asset Disposal Account, Credit Profit and Loss Account.

C. Asset Disposal Account, Credit Asset Account.

D. Profit and loss Account, Credit Provision for Depreciation.

49. The financial statement which is an expression of the accounting equation is the.

A. Trading Account.

B. Profit and Loss Account.

C. Balance Sheet.

D. Statement of cash flow.

50. Which of the following errors will affect the agreement of the trial balance?

A. Error of Original entry.

B. Error of commission.

C. Error of Transposition.

D. Error of Omission.

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ensofts

Candle Light To The World

FINANCIAL ACCOUNTING

WASSCE 2016

Objectives

copyright:ensoft2024. company@en-soft.com Phone:2347072716127

ensofts

Candle Light To The World

FINANCIAL ACCOUNTING

WASSCE 2016Objectives

copyright:ensoft2024. company@en-soft.com Phone:2347072716127

WASSCE 2016

Objectives