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1997 - WAEC Accounting Past Questions and Answers - page 1

1

A suspense account is used to

A
agree the trial balance
B
recoord sales
C
record purchases
D
correct errors
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2

To correct an error, the purchases account was debited while Suspense account was credited. Which of the following was the cause of the error?

A
undercasting of purchase
B
overcasting of purchases
C
original entry
D
transportation of returns outwards
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3

Subscription in advance is treated in the Balance sheet of non-profit making organizations as

A
current asset
B
fixed asset
C
current liability
D
accumulated fund
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4

A sales day book is used to record

A
cash sales of stock
B
credit sales of stock
C
cash and credit sales of stock
D
cash sales of fixed assets
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5

Which of the following is not a capital expenditure to a local government?

A
beds
B
theatre equipment
C
incubators
D
x-ray machine
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6

A Receipt and Payments Account reveals

A
net profit
B
surplus
C
cash in hand
D
gross profit
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7

An example of appropriation of profit in a company is

A
salaries
B
rent income
C
debenture interest
D
director's remuneration
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8

In a partnership goodwill is recognized when

A
a new partner is admitted
B
a partner is dormant
C
the business is making huge profit
D
the business has good customer relations
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9

Which of the following is a normal account?

A
Machinery
B
Debtors
C
Creditors
D
Salaries
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10

Use the following information to answer this question

An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.

The net book value at the time of sale was

A
N16,000
B
N14,000
C
N12,000
D
N8,000
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