1993 - WAEC Accounting Past Questions & Answers - page 1

1
The books of accounts are opened by means of a
A
sales journal
B
principle journal
C
purchases journal
D
return inwards journal
CORRECT OPTION: b
2
Which of the following is true of trade discounts?
A
they are recorded in the ledger only
B
they are not different from cash discount
C
they are recorded in journal onlu
D
they are recorded in ledgers and journals
CORRECT OPTION: c
3
Return inwards was understated. The effect is that
A
amount of goods available was understated
B
cost of sales was understated
C
amount of purchase returns was understated
D
amount of sales was understated
CORRECT OPTION: c
4
Which of the following is not contained in the sales ledger control account?
A
receipts from debtors
B
returns inwards
C
returns outwards
D
dishonoured cheque
CORRECT OPTION: c
5
Which of the following is a credit item on an income and expenditure account?
A
bar expenses
B
electricity
C
salaries
D
subscription
CORRECT OPTION: d
6
Payment for future services are
A
prepayment
B
deposit
C
accruals
D
invesment
CORRECT OPTION: e
7
An excess of the value of the assets over the purchases consideration for acquisition of business is credited to
A
general reserve
B
capital reserve
C
goodwill
D
current asset
CORRECT OPTION: b
8
shares are sold at less than nominal value. They are issued at a
A
profit
B
loss
C
discount
D
premium
CORRECT OPTION: c
9
A share is under-subscribed when
A
it is offered for sale at less than the nominal value
B
it is offered for sale at nominal value
C
the number of shares applied for is less than the offer
D
it is offered for sale at more thn norminal value
CORRECT OPTION: c
10
Mark-up on goods sent to branch offices are recorded in the books by creating
A
stock adjustment account debiting branch stock account
B
goods sent to branch account and debiting branch stock account
C
branchh stock account and debiting stock adjustment account
D
cash account and crediting branch stock account
CORRECT OPTION: a
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