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
correct option: a
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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
correct option: a
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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
correct option: c
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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
correct option: b
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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
correct option: e
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6
A Receipt and Payments Account reveals
A
net profit
B
surplus
C
cash in hand
D
gross profit
correct option: c
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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
correct option: e
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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
correct option: a
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9
Which of the following is a normal account?
A
Machinery
B
Debtors
C
Creditors
D
Salaries
correct option: d
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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
correct option: e
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