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WAEC - Accounts Principles Of Accounts (2024)

1
A bank is interested in accounting information of a client for the purpose of  
Answer
(C)
assessing the credit worthiness of the customer.
2
An item recorded in the profit and loss account is 
Answer
(D)
general expenses.  
3
The concept which assumes that transactions should be expressed using a common denominator is 
Answer
(B)
money measurement concept.
4

Use the following information to answer the questions

The yearly depreciation charge using the straight line method is  
\(\frac{X-Y}{Z}\) 

The letter X in the formula represents 

Answer
(A)
cost of the asset.
5

Use the following information to answer the questions

The yearly depreciation charge using the straight line method is  
\(\frac{X-Y}{Z}\) 

The letter Z in the formula represents 

Answer
(C)
estimated useful life of the asset.
6
In manufacturing account, wages of machine operators are classified as 
Answer
(A)
prime cost.
7

Use the following information to answer this question

  Le

Opening stock 6,000  
Sales 180,000  
Closing stock 4,200  

Mark-up is 33\(\frac{1}{3}\)%

 

The value of purchases is

Answer
(C)
Le 133,200.
8

Use the following information to answer this question

  Le

Opening stock 6,000  
Sales 180,000  
Closing stock 4,200  

Mark-up is 33\(\frac{1}{3}\)%

The cost of goods sold is 
 

Answer
(B)
Le 135,000.
9

Use the following information to answer this question

  Le

Opening stock 6,000  
Sales 180,000  
Closing stock 4,200  

Mark-up is 33\(\frac{1}{3}\)%

The gross profit is 

Answer
(B)
Le 45,000.
10
A sole trader received the sum of # 4,860 cash from a debtor. The effect of this transaction in the balance sheet is 
Answer
(C)
increase in cash and decrease in debtor.
11
According lo the entity concept, ownership is 
Answer
(C)
separated from the business.
12
An item recorded in the trial balance is 
Answer
(A)
opening stock.
13
The class of shares which are available only to the promoters of a company are 
Answer
(D)
deferred shares.
14
Expense incurred but not yet paid is 
Answer
(B)
current liability.  
15
Work-in-progress is an item in 
Answer
(D)
manufacturing account.
16
In an incomplete record, the excess of opening capital ove closing capital is 
Answer
(B)
loss.
17

Use the following information to answer this question

Bayo issued a credit note to Ayo who returned defective goods. Each party maintains sales ledger control account and purchases ledger control account.  

Ayo will record this transaction on the

Answer
(C)
debit side of the purchases ledger control account.
18

Use the following information to answer this question

Bayo issued a credit note to Ayo who returned defective goods. Each party maintains sales ledger control account and purchases ledger control account.  

Bayo will record this transaction on the 

Answer
(B)
credit side of the sales ledger control account. 
19
The concept that underlies the comparing of expenditure for a period with the revenue of same period is 
Answer
(C)
matching concept. 
20
An item is classified as a current asset if it is 
Answer
(B)
expected to be realized within the balance sheet date. 
21
Subscriptions classified in the balance sheet as a current asset is subscriptions 
Answer
(B)
in arrears.
22
Which of the following items will not be charged to the manufacturing account? 
Answer
(A)
Warehouse rent
23
An account in the real ledger is 
Answer
(D)
machinery
24

Use the following information to answer this question.

 
The margin for a business is 2/5 and the cost of sales is $ 120,000.  


The mark-up for the business is 

Answer
(C)
2/3
25

Use the following information to answer this question.
The margin for a business is 2/5 and the cost of sales is $ 120,000.  

The sales value for the business is 

Answer
(C)
$ 200,000.
26
The objective of preparing a departmental account is to 
Answer
(B)
ascertain the profit of each department.
27
A debit balance of D 61,000 on a customer's bank statement means that 
Answer
(B)
the customer owes the bank D 61,000.
28

Use the following information to answer this question. 
  GH¢  
Trade creditors 1/1/2022  35,000  
Payment to suppliers in 2022 30,000  
Discounts received  1,800  
Trade creditors 31/12/2022  24,000  

The purchases for 2022 is 

Answer
(D)
GH¢ 20,800. 
29

Use the following information to answer this question. 
  GH¢  
Trade creditors 1/1/2022  35,000  
Payment to suppliers in 2022 30,000  
Discounts received  1,800  
Trade creditors 31/12/2022  24,000  

The balance sheet as at 31/12/2022 will show current liability of 

Answer
(B)
GH¢ 24,000.
30
A credit purchase of D 63 from Kofi has been entered in he accounts as D 16. This is an error of 
Answer
(B)
original entry.
31

Use the following information to answer this question.

Taiyelolu and Ejire are partners sharing profits or losses equally. Extracts from their books showed:  
 
 Taiyelolu  Ejire
 #  #  
Capital accounts (1/1/2023)  200,000 100,000  
Current accounts (1/1/2023) 40,000 80,000  
Drawings within the year 20,000 30,000  
Annual salaries  28,000 24,000  

 

Interest on capital is agreed at 10% and the net profit for the year is # 120,000.  

The interest on Taiyelolu's capital is 

Answer
(A)
#20,000.
32

Use the following information to answer this question.

Taiyelolu and Ejire are partners sharing profits or losses equally. Extracts from their books showed:  
 
 Taiyelolu  Ejire
 #  #  
Capital accounts (1/1/2023)  200,000 100,000  
Current accounts (1/1/2023) 40,000 80,000  
Drawings within the year 20,000 30,000  
Annual salaries  28,000 24,000  

Interest on capital is agreed at 10% and the net profit for the year is # 120,000.  

Ejire's share of profit is 

Answer
(D)
#19,000
33

Use the following information to answer this question.

Taiyelolu and Ejire are partners sharing profits or losses equally. Extracts from their books showed:  
 
 Taiyelolu  Ejire
 #  #  
Capital accounts (1/1/2023)  200,000 100,000  
Current accounts (1/1/2023) 40,000 80,000  
Drawings within the year 20,000 30,000  
Annual salaries  28,000 24,000  

Interest on capital is agreed at 10% and the net profit for the year is # 120,000.  

Taiyelolu's balance of current account at the end of the year is

Answer
(B)
$87,000.
34
Purchased goodwill is purchase consideration less the value of 
Answer
(B)
net identifiable assets.
35
Errors in the trial balance are corrected using the 
Answer
(D)
journal.
36
The equivalent of income and expenditure account in a limited liability company is 
Answer
(D)
profit and loss account.
37
The owner's claim on the asset of a business is 
Answer
(A)
capital.
38
 A partner who has not contributed any form of capital into the firm but only lends his name to be used as a partner is a 
Answer
(D)
nominal partner.  
39
Liquid assets refer to
Answer
(A)
cash and other assets that can be easily converted into cash.
40

Use the following information to answer this  question.
Ade bought goods worth le 30,000 from Ode and was given a 7.5% discount.  


The evidence of payment for the goods Ade bought is the 

Answer
(A)
receipt.
41

Use the following information to answer this  question.
Ade bought goods worth le 30,000 from Ode and was given a 7.5% discount.  

The amount paid for the goods is 

Answer
(C)
Le 27,750.
42
The proportion of the issued capital to be paid later is 
Answer
(C)
uncalled-up capital.
43
One of the columns in a single column cash book is 
Answer
(D)
particulars. 
44

Use the following information to answer this question.  
 D  
Purchases of motor van  370,000  
Building of laboratories 760,000  
Purchase of drugs 110,000  
Electricity 26,000  
Repair of equipment  10,000

The amount of recurrent expenditure is

Answer
(A)
D 146,000.
45

Use the following information to answer this question.  
 D  
Purchases of motor van  370,000  
Building of laboratories  760,000  
Purchase of drugs 110,000  
Electricity 26,000  
Repair of equipment  10,000

The capital expenditure is 

Answer
(B)
D 1,130,000