2002 - WAEC Accounting Past Questions and Answers - page 5

41
Depreciation is
A
cost of repairs incurred on a fixed asset
B
a charge for the wear and tear of fixed assets
C
the cost incurred on replacing a fixed asset
D
provision for loss of fixed asset
correct option: b
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42
A trader paid insurance premium of N45,000 for 15 months ended 31st March, 2000. He prepares account to 31st December. How much is carried in the Balance Sheet at 31st December, 2000?
A
N45,000
B
N12,000
C
N9,000
D
N4,500
correct option: c
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43
A trader paid insurance premium of N45,000 for 15 months ended 31st March, 2000. He prepares account to 31st December. The amount carried in the Balance sheet is classified as
A
current asset
B
current liability
C
capital
D
long-term liability
correct option: a
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44
The total amount of money set aside for a particular purpose by government is
A
fund
B
vote
C
virement
D
budget
correct option: a
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45
"Accountants do not count chickens before they are climbed". This is the concept of
A
accrual
B
materiality
C
realisation
D
going-concern
correct option: c
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46
Subscriptions in arrears is treated in the balance sheet of a club as
A
current liability
B
intangible assets
C
fictitious asset
D
current asset
correct option: d
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47
A suspense account is used to
A
record sales
B
agree the trial balance
C
record purchases
D
prepare the balance sheet
correct option: b
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48
Which of the following belongs to the sales ledger?
A
Motor Van Disposal account
B
Bank Account
C
Debtors Account
D
Rent and Rates Account
correct option: c
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