2012 - WAEC Accounting Past Questions and Answers - page 4

In accounting, goodwill is the value of the business that exceeds its assets minus the liabilities.

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.

Central processing unit (CPU), computer system, generally composed of the main memory, control unit, and arithmetic-logic unit.

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.

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).

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.

A profit and loss (P&L) statement summarizes the revenues, costs, and expenses incurred during a specific period of time.

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.

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