2012 - WAEC Accounting Past Questions and Answers - page 4
The excess of value of assets over the purchase consideration on acquisition of a business is credited to
In accounting, goodwill is the value of the business that exceeds its assets minus the liabilities.
Which of the following is not the purpose of a control account?
In accounting, the controlling account (also known as an adjustment or control account) is an account in the general ledger for which a corresponding subsidiary ledger has been created.
The details for each control account will be found in a related (but separate) subsidiary ledger. The control account keeps the general ledger free of details, but still has the correct balance for preparing the company's financial statements.
Which of the following is not part of the central processing unit of a computer?
Central processing unit (CPU), computer system, generally composed of the main memory, control unit, and arithmetic-logic unit.
The double entry to record the proceeds on disposal of assets in debit
Debit provision for Depreciation account (to remove the equipment's up-to-date accumulated depreciation), Credit the account Equipment (asset disposal account) to remove the equipment's cost.
Which of the following is a form of memorandum of association
A memorandum of association contains a name clause, registered office clause, object (or objective clause), objects clause, liability clause, capital clause, and association clause. An MOA is a type of legal paper that is prepared when forming and registering a limited liability company (LLC).
An underwriter for a company's share is paid
Underwriting commission is the compensation that an underwriter receives for offering underwriting services. a fee is paid as a return for the implicit risk involved in the underwriting contract.
Administrative, selling and distribution expenses in a manufacturing firm are recorded in
A profit and loss (P&L) statement summarizes the revenues, costs, and expenses incurred during a specific period of time.
Which of the following is not a revenue to a local government?
State and local governments collect tax revenues from three primary sources: income, sales, and property taxes. Income and sales taxes make up the majority of combined state tax revenue, while property taxes are the largest source of tax revenue for local governments, including school districts.
Which of the following is not an item in the profit and loss account?
Drawings account is one of the temporary accounts and is closed at the end of accounting period. But this account is not closed in the income statement i.e. trading account or profit and loss account rather it is closed in the capital account of the owner which is reported in the statement of financial position