2007 - WAEC Accounting Past Questions and Answers - page 4
31
Youngsters Club has a membership of 115 persons. Each member pays an annual subscription of ₦50. During the year ended 31st December 2005, 8 members had not paid their subscriptions. using the information, the subscriptions shown in the Balance sheet as at 31st December 2005 is
A
₦400(asset)
B
₦150(asset)
C
₦150(liability)
D
400(liability)
correct option: a
Users' Answers & Comments32
The accounting principle which states that for every debit entry, there is a corresponding credit entry is recognized by
A
realization concept
B
entity concept
C
going cornvern concept
D
dual aspect concept
correct option: d
Users' Answers & Comments33
Which of the following is not an accounting convention?
A
maternity
B
consistency
C
business entity
D
periodicity
correct option: c
Users' Answers & Comments34
In the absence of partnership agreement, profits and losses are shared
A
in the ratio of capitals
B
equally
C
in the ratio of drawings
D
according to services rendered
correct option: b
Users' Answers & Comments35
Which of the following formulae is used to calculate stock turnover rate?
A
\(\frac{sales}{\text{average stock}}\)
B
\(\frac{\text{cost f sales}}{\text{average stock}}\)
C
\(\frac{\text{cost of sales}{\text{opening stock}}\)
D
\(\frac{\text{cost of sales}}{\text{average stock}}\)
correct option: b
Users' Answers & Comments36
Which of the following bases of accounting does not make allowance for depreciation?
A
cash basis
B
accrual basis
C
matching basis
D
commitment basis
correct option: c
Users' Answers & Comments37
Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \ \hline Premises & 100,000 \ Plant & 50,000\ Fixtures & 30,000\ Stock & 2,000 \ Debtor & 10,000\ Cash & 10,000\ Creditors & 20,000 \end{array}\)
Total assets is
\(\begin{array}{c|c} & ₦ \ \hline Premises & 100,000 \ Plant & 50,000\ Fixtures & 30,000\ Stock & 2,000 \ Debtor & 10,000\ Cash & 10,000\ Creditors & 20,000 \end{array}\)
Total assets is
A
₦240,000
B
₦220,000
C
₦200,000
D
₦180,000
correct option: b
Users' Answers & Comments38
Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \ \hline Premises & 100,000 \ Plant & 50,000\ Fixtures & 30,000\ Stock & 2,000 \ Debtor & 10,000\ Cash & 10,000\ Creditors & 20,000 \end{array}\)
Current ratio is
A
4 : 1
B
3 : 1
C
2 : 1
D
1 : 1
correct option: d
Current ratio is calculated by dividing your current assets by your current liabilities.
current assets = stock + debtors + cash
2,000 + 10,000 + 10,000 = 22,000
\(\frac{22,000}{20,000}\) = 1.1
39
Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \ \hline Premises & 100,000 \ Plant & 50,000\ Fixtures & 30,000\ Stock & 2,000 \ Debtor & 10,000\ Cash & 10,000\ Creditors & 20,000 \end{array}\)
Quick ratio is
\(\begin{array}{c|c} & ₦ \ \hline Premises & 100,000 \ Plant & 50,000\ Fixtures & 30,000\ Stock & 2,000 \ Debtor & 10,000\ Cash & 10,000\ Creditors & 20,000 \end{array}\)
Quick ratio is
A
4 : 1
B
3 : 1
C
2 : 1
D
1 : 1
correct option: d
Users' Answers & Comments40
Which of the following is not used for determining working capital?
A
cash
B
debtors
C
motor vehicles
D
overdraft
correct option: c
Users' Answers & Comments