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1998 - WAEC Accounting Past Questions and Answers - page 3

21

Which of the following is/are true? i. depreciation charges increase profits ii. reduction in provision for bad debt increases profit iii. undervalued stock increases profits

A
ii and iii
B
i and iii
C
iii
D
ii
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22

Uche returned goods worth N1,500 to Udo. Uche should receive

A
an invoice
B
a statement of account
C
a debit note
D
a credit note
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23

To realize an asset means to

A
close its account in the ledger
B
give it out as a collateral
C
turn it to cash
D
open its account in the ledger
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24

When a fixed asset is fully depreciated, its net book value is

A
equal to its original cost
B
twice its original cost
C
equal to its current market value
D
the difference between its cost and market value
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25

Goods worth N800 was stolen. The double entries are, debit,

A
purchases account, credut trading account
B
trading account, credit purchases account
C
profit and loss account, credit purchases account
D
profit and loss account, credit purchases account
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26

Payment for shares in excess of amount demanded gives rise to

A
dividend warrant
B
revenue reserve
C
capital reserve
D
call-in-advance
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27

Provision for discount on debtor on debtors is to be

A
debited to profit and loss account
B
creit to profit and loss discount
C
debit to debtors account
D
debited to provision for bad debts account
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28

Which of the following cannot be realized?

A
debtors
B
creditors
C
fixtures
D
goodwill
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29

Use the following information to answer the given question
(\begin{array}{c|c} & N \ \hline \text{Construction of classrooms} & 500,000\ \text{Purchase of tablets and chairs} & 50,000 \ \text{Purchase of textbooks for library} & 40,000 \ \text{Annual inter-house sports competition} & 20,000 \ \text{Payment of teachers salary} & 80,000
\end{array})
Capital expenditure for the year was

A
N690,000
B
N590,000
C
N500,000
D
N140,000
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30

Use the following information to answer the given question
(\begin{array}{c|c} & N \ \hline \text{Construction of classrooms} & 500,000\ \text{Purchase of tablets and chairs} & 50,000 \ \text{Purchase of textbooks for library} & 40,000 \ \text{Annual inter-house sports competition} & 20,000 \ \text{Payment of teachers salary} & 80,000
\end{array})
Recurrent expenditure of the year was

A
N170,000
B
N130,000
C
N120,000
D
N100,000
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