1995 - WAEC Accounting Past Questions & Answers - page 1

1
Which of the following is the effect of a reduction in the provision for doubtful debts?
A
reduction in net profit
B
reduction in cash balance
C
reduction in gloss profit
D
increase in gross profit
CORRECT OPTION: e
2
Which of the following is the basis of accounting in the Civil Service?
A
accrual
B
cash
C
income
D
expenditure
CORRECT OPTION: b
3
The reward given to a debenture holder is called
A
profit
B
reserve
C
premium
D
dividend
CORRECT OPTION: e
4
Which of the following is not a debit entry on a sales ledger control account?
A
goods sold
B
cash received
C
dishonoured cash
D
payment to debtors for claim
CORRECT OPTION: b
5
If incorrect entries on the debit side equal other incorrect entries on the credit side, the error is that of
A
ordinary entry
B
omission
C
commission
D
compensation
CORRECT OPTION: d
6
The accounting entries required for increase in provision for doubtful debts are
A
debit profit and loss account, credit provision for doubtful debts account
B
credit provision for doubtful debts account; debit profit and loss account
C
credit trading account; credit provision and doubtful debts account
D
credit trading trading account; debit provision for doubtful debts account
CORRECT OPTION: a
7
Subscription in advance is an example of
A
payment
B
accual
C
debtors
D
provision
CORRECT OPTION: b
8
Which of the following is an example of Personal Accounts?
A
stock
B
fixture
C
equiptment
D
rent
CORRECT OPTION: e
9
Working capital is measured by the excess of
A
current liabilities over current assets
B
fixed assets over current assets
C
currents assets over current liabilities
D
current assets over fixed assets
CORRECT OPTION: c
10
The undistributed profits of a limited liability company is
A
goodwill
B
working capital
C
net profit
D
rtained earings
CORRECT OPTION: d
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