2008 - WAEC Accounting Past Questions & Answers - page 1

1
Which of the following is the basis accounting equation?
A
assets = capital + liabilities
B
capital = assets + liabilities
C
liabilities = assets + capital
D
assets = liabilities + equity
CORRECT OPTION: a
2
A sales Day book is used for recording
A
credit sales
B
sales returns
C
hire purchase
D
cash sales
CORRECT OPTION: a
3
An analytical cash book is used to
A
indicate source of cash received
B
categorise petty cash payment
C
separate cash and bank balance
D
analyse amounts due from debtors
CORRECT OPTION: c
4
Which of the following concepts is exposed to hold when a proprietor makes a drawing of goods or cash from the business?
A
business entity
B
realization
C
going concern
D
sual-aspect
CORRECT OPTION: a
5
In a partnership business, the net profit serves as opening figure for
A
trading account
B
profit and loss accoun
C
current account
D
appropriation account
CORRECT OPTION: d
6
Which of the following is the effect of an increase in the provision for discount allowed?
A
increase in net profit
B
decrease in ross profit
C
decrease in net profit
D
increase in gross profit
CORRECT OPTION: c
7
In the preparation of manufacturing accounts, prime cost plus factory overheads equal to cost of
A
materials available
B
production
C
sales
D
materials used
CORRECT OPTION: b
8
Returns inwards is also called
A
purchases returns
B
sales returns
C
goods on sales or return
D
goods in transit
CORRECT OPTION: b
9
Tale LTd. has 100,000 ordinary shares of ₦1 each and 60,000 5% preference shares of ₦1 each. Both were fully paid as shown below,
\(\begin{array}{c|c} & ₦\ \text{Profit and loss appropriation b/f} & 10,000\ \text{Net profit for the year} & 6,000\ \text{Proposed dividend on ordinary shares} & 4,000\ \text{Interim dividend} & 6,000\ \text{Goodwill written off} \ 600\end{array}\)
The balance of the profit and loss appropriation account as at the end of the year was
A
₦16,000
B
₦10,000
C
₦5,400
D
₦1,400
CORRECT OPTION: c
10
Tale LTd. has 100,000 ordinary shares of ₦1 each and 60,000 5% preference shares of ₦1 each. Both were fully paid as shown below,
\(\begin{array}{c|c} & ₦\ \text{Profit and loss appropriation b/f} & 10,000\ \text{Net profit for the year} & 6,000\ \text{Proposed dividend on ordinary shares} & 4,000\ \text{Interim dividend} & 6,000\ \text{Goodwill written off} \ 600\end{array}\)
The authorized capital of Tale Ltd is
A
₦176,000
B
₦166,000
C
₦160,000
D
₦16,000
CORRECT OPTION: c
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