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1989 - WAEC Accounting Past Questions and Answers - page 3

21

When a buyer returns damages goods to the seller, the buyer receives a

A
proforma invoice
B
credit note
C
debit note
D
consiment note
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22

Trade discount is

A
allowance for prompt payment
B
allowance for damaged goods
C
allowance off price list
D
discount on creditors
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23

Pending the location of error, the difference disclosed in the trial balance is normally posted to

A
an adjustment account
B
a control account
C
a suspense account
D
a profit and loss account
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24

Which of the following is not true of capital expenditure? i. assets acquired for the purpose of earning income ii. extension of office building iii. it is incurred and its full benefits consumed in one period of account

A
i
B
ii
C
i and ii
D
ii and iii
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25

Which of the following may cause depreciation? i. wear and tear ii. obsolescence and passage of time iii. fluctuation

A
i, ii and iii
B
i and ii
C
i and iii
D
ii and iii
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26

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the straight line method, the annual depreciation is

A
N3,100
B
N3,000
C
N2,900
D
N2,300
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27

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400.Using the reducing balance method what will be the depreciation charge for year 2 at 20%? (ignoring residual value)

A
N3,000
B
N2,900
C
N2,400
D
N1,920
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28

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the reducing balance method, what us the net book value at the end of the year 2? (ignoring residual value)

A
N10,480
B
N10,080
C
N9,680
D
N9,600
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29

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. The accumulated depreciation at the end of the year 3 using the straight line method is

A
N9,300
B
N9,000
C
N8,700
D
N6,900
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30

Factory cost consists of

A
direct material and factory overhead
B
direct labour and direct expenses
C
direct labour and factory overhead
D
direct6 materials, direct labour, direct expenses and factory overhead
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