2010 - WAEC Accounting Past Questions & Answers - page 1

1
Which of the following is not an external user of accounting information?
A
management
B
creditors
C
shareholders
D
government
CORRECT OPTION: a
2
A trial balance is prepared to
A
detect fraud
B
ascertain losses in a trading period
C
determine opening capital
D
test arithmetical accuracy of ledger entries
CORRECT OPTION: d
3
Which of the following is the reason why a seller allows a customer cash discount?
A
agreement to become a regular customer
B
introducing a new customer to the seller
C
settlement of account within a stated period
D
placing a larger order
CORRECT OPTION: c
4
A ledger is a
A
principal book of accounts
B
book of original entry
C
recoed of credit transactions
D
summary of entries
CORRECT OPTION: a
5

Which of the following is not found in a trial balance?

A
opening stock
B
closing stock
C
capital
D
rent paid
CORRECT OPTION: b

Closing stock is the leftover balance out of goods which were purchased during an accounting period. Total purchases are already included in the trial balance, Hence closing stock should not be included in the trial balance again. If it is included, the effect will be doubled.

6
Use the following information to answer the question given
\(\begin{array}{c|c} \text{Jan. 1} & \text{₦}\ \hline \text{1/1/08 Capital introduced by cash} & 50,000 \ \text{2/1/08 Bought goods for retail by cash} & 10,000\ \text{3/1/08 Sold fixtures by cash} & 5,000\ \text{4/1/08 Sold goods to Lagbaja on credit} & 3,000\ \text{5/1/08 Bought goods on credit from Tamedu}& 8,000\end{array}\)
Cash balance at 5/1/08 is
A
₦50,000
B
₦40,000
C
₦35,000
D
₦30,000
CORRECT OPTION: d
7
Use the following information to answer the question given
\(\begin{array}{c|c} \text{Jan. 1} & \text{₦}\ \hline \text{1/1/08 Capital introduced by cash} & 50,000 \ \text{2/1/08 Bought goods for retail by cash} & 10,000\ \text{3/1/08 Sold fixtures by cash} & 5,000\ \text{4/1/08 Sold goods to Lagbaja on credit} & 3,000\ \text{5/1/08 Bought goods on credit from Tamedu}& 8,000\end{array}\)
Balance in Purchases account at 5/1/08 is
A
₦23,000
B
₦18,000
C
₦10,000
D
₦8,00
CORRECT OPTION: b
8
Use the following information to answer the question given
\(\begin{array}{c|c} \text{Jan. 1} & \text{₦}\ \hline \text{1/1/08 Capital introduced by cash} & 50,000 \ \text{2/1/08 Bought goods for retail by cash} & 10,000\ \text{3/1/08 Sold fixtures by cash} & 5,000\ \text{4/1/08 Sold goods to Lagbaja on credit} & 3,000\ \text{5/1/08 Bought goods on credit from Tamedu}& 8,000\end{array}\)
Balance in the Capital Account at 5/1/08 is
A
₦60,000
B
₦50,000
C
₦35,000
D
₦5,000
CORRECT OPTION: c
9
Where a wrong figure occurs in only one account with the second figure correctly stated, this is an error of
A
transposition
B
compensation
C
omission
D
commission
CORRECT OPTION: a
10
Which of the following is added to the proprietor's capital?
A
Net profit
B
gross profit
C
net sales
D
gross sales
CORRECT OPTION: a
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