Sign In

WAEC - Accounts Principles Of Accounts (2015)

1
Which of the following describes a trial balance?
Answer
(B)
It is a list of balances in the books
2
Which of the following is not a feature of accounting information?
Answer
(A)
Affordability
3
Which of the following is the equation for determining net profit or loss from the records of a firm?
Answer
(C)
Closing Capital + Opening Capital - Drawings
4
Purchase invoice is first entered in the
Answer
(A)
Purchases Account
5
Assets acquired is recorded by debiting _______?
Answer
(A)
Asset Account, Crediting Cash Account
6
Goods returned to a supplier is
Answer
(B)
Credited to returns outwards account
7
Which of the following is not a real account?
Answer
(B)
Salaries account
8
The accounting ledger for goods sold on credit are debit
Answer
(A)
debtors account, credit sales account
9
Which of the following is not a book of original entry?
Answer
(B)
Purchases account
10
What is a ledger entry for the sale of plant and machinery on credit to Wilson?
Answer
(C)
Credit sales account and debit Wilson's Account
11
Discount received account is a
Answer
(C)
Nominal account
12
Which of the following accounts has a credit balance?
Answer
(A)
Capital
13
The accounting entry to correct sales day book overcast is?
Answer
(D)
Debit sales account and credit suspense account
14
Which of the following expresses the accounting equation?
Answer
(B)
Assets - liabilities = Capital
15
When the invoice of a customer is overcast, the supplier will send to him a
Answer
(D)
Credit note
16
Unpresented cheques are cheques_________
Answer
(A)
That have been recorded in the cash book but not by the bank
17
Use the following information to answer the questions below.
Extracts from the books of a firm as at June 30, 2012 showed the following balances.

\(\begin{array}{c|c}
& \text{Dr GH¢} & \text{Cr GH¢} \\
\hline Advertising & 36,000 & - \\
\hline
Electricity & 60,000 & -
\end{array}\)

Advertising was paid by cheque covering 12 months installments ending March 31 2012. Electricity was paid by cash covering 15 monthly installments from March 1, 2011.

Advertising owing in respect of the year ended June 30, 2012 is _______?
Answer
(D)
GH¢ 3,000
18
Use the following information to answer the questions below.
Extracts from the books of a firm as at June 30, 2012 showed the following balances.

\(\begin{array}{c|c}
& \text{Dr GH¢} & \text{Cr GH¢} \\
\hline Advertising & 36,000 & - \\
\hline
Electricity & 60,000 & -
\end{array}\)

Advertising was paid by cheque covering 12 months installments ending March 31 2012. Electricity was paid by cash covering 15 monthly installments from March 1, 2011.

What was the amount charged to the profit and loss account in respect of advertising for the ended June 30 2012 is_____?
Answer
(A)
GH¢ 36,000
19
Use the following information to answer the questions below.
Extracts from the books of a firm as at June 30, 2012 showed the following balances.

\(\begin{array}{c|c}
& \text{Dr GH¢} & \text{Cr GH¢} \\
\hline Advertising & 36,000 & - \\
\hline
Electricity & 60,000 & -
\end{array}\)

Advertising was paid by cheque covering 12 months installments ending March 31 2012. Electricity was paid by cash covering 15 monthly installments from March 1, 2011.

Electricity in arrears as at June 30, 2012 amounted to
Answer
(D)
GH¢ 4,000
20
The cost of putting goods into a saleable condition is charged to
Answer
(C)
Profit and loss account
21
Which of the following is not a method of depreciating fixed assets?
Answer
(D)
Obsolescence
22
In preparing a profit and loss account, a decrease in provision for doubtful debts accounts is treated as
Answer
(C)
Income
23
The process of using sales ledger balance to cancel off purchases ledger balance is
Answer
(B)
Set off
24
Which of the following items is found in the sales ledger control account?
Answer
(C)
Discount allowed
25
The total of the returns outwards journal is posted to the
Answer
(D)
Credit side of the returns outwards account
26
Which of the following is a not revealed by a firm's accounting records?
Answer
(B)
Quality of labour force
27
Use the following information to answer the question below

\(\begin{array}{c|c}
& 1/7/10 & 30/6/11 \\
& D & D \\
\hline
\text{Stock} & 1,460 & 4,200 \\
\hline
\text{Motor Car} & 3,600 & 3,200 \\
\hline
\text{Creditors} & 600 & 700
\end{array}\)
Drawings during the year amounted to D1,500.

Opening capital is
Answer
(C)
D4,460
28
Use the following information to answer the question below

\(\begin{array}{c|c}
& 1/7/10 & 30/6/11 \\
& D & D \\
\hline
\text{Stock} & 1,460 & 4,200 \\
\hline
\text{Motor Car} & 3,600 & 3,200 \\
\hline
\text{Creditors} & 600 & 700
\end{array}\)
Drawings during the year amounted to D1,500.

Closing capital is
Answer
(C)
D6,700
29
Use the following information to answer the question below

\(\begin{array}{c|c}
& 1/7/10 & 30/6/11 \\
& D & D \\
\hline
\text{Stock} & 1,460 & 4,200 \\
\hline
\text{Motor Car} & 3,600 & 3,200 \\
\hline
\text{Creditors} & 600 & 700
\end{array}\)
Drawings during the year amounted to D1,500.

Net profit for the year is
Answer
(B)
D3,740
30
In the balance sheet of a social club, subscription owing is treated as a
Answer
(B)
Current asset
31
The accounting concept that allows the cost of kitchen cutlery to be expensed , though it will be used for more than one year is
Answer
(A)
Materiality
32
The accounting concept that assumes that a business will continue operating for an indefinite period is
Answer
(B)
Going concern
33
The accounting concept that states that a firm's financial affairs must be separated from that of the owner's private transactions is
Answer
(A)
Business entity
34
Goodwill is recognized in partnership accounts when
Answer
(D)
A new partner is admitted
35
In which of the following is not stated in the partnership agreement?
Answer
(D)
Purpose of partnership
36
In which of the following accounts is interest on partners capital found?
Answer
(D)
Profit and Loss appropriation
37
Use the following information to answer the question below

\(\begin{array}{c|c}
& Ade(N) & Bola(N) \\
\hline
Capital & 40,000 & 30,000 \\
\hline
Drawings & 10,000 & 15,000
\end{array}\)
Interest on drawing is 5%; profit is shared equally.

Ade's share of profit is
Answer
(C)
N2,750
38
Use the following information to answer the question below

\(\begin{array}{c|c}
& Ade(N) & Bola(N) \\
\hline
Capital & 40,000 & 30,000 \\
\hline
Drawings & 10,000 & 15,000
\end{array}\)
Interest on drawing is 5%; profit is shared equally.

Bola's share of profit is
Answer
(D)
N2,750
39
Use the following information to answer the question below

Mr White acquired Mr Black's business for GH¢ 410,000. The total assets were GH¢ 670,000 and liabilities amounted to GH¢ 320,000.

How much was paid for goodwill?
Answer
(D)
GH¢ 60,000
40
Use the following information to answer the question below

Mr White acquired Mr Black's business for GH¢ 410,000. The total assets were GH¢ 670,000 and liabilities amounted to GH¢ 320,000.

The double entry to record the good will in the books is debit
Answer
(B)
Goodwill account and credit purchase of business account
41
The document which sets out the internal arrangement for the proper management of a company is the
Answer
(B)
Article of association
42
A person who has applied to purchase shares in a company is referred to as ?
Answer
(B)
A subscriber
43
Which of the following expenses is allocated according to the floor area?
Answer
(B)
Rent and Rates
44
Goods stolen at the branch is debited to
Answer
(A)
Defalcations account
45
Which of the following is a source of revenue for a local government?
Answer
(D)
Market tolls