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2014 - WAEC Accounting Past Questions and Answers - page 3

21

The sum of direct cost in a manufacturing account is

A
production cost
B
prime cost
C
total cost
D
finance cost
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22

When an asset is sold, the entries for the accumulated depreciation are; debit

A
assets disposal account; credit provision for depreciation account
B
provision for depreciation account; credit asset disposal account
C
fixed asset account; credit asset disposal account
D
asset disposal account; credit fixed asset account
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23

A petty cash account has an imprest of D28,000. The account has a debit balance of D5,000. How much cash is needed to restore the imprest?

A
D33,000
B
D28,000
C
D23,000
D
D5,000
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24

In a not-for-profit making organization, when the total income is less than the total expenditure, the difference is a

A
surplus
B
shortfall
C
loss
D
deficit
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25

The concept that states that a business should not lay claim to any profits before it is earned with reasonable certainty is

A
constitency concept
B
prudence concept
C
accrual concept
D
going corncern cocept
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26

When shares are issued above their nominal value, the excess above the nominal value is

A
credited to profit and loss account
B
debited to share premium account
C
credited to share capital account
D
credited to share premium account
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27

Shares issued below nominal value are referred to as shares at

A
premium
B
discount
C
face value
D
cumulative value
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28

Use the following information to answer the question given.

(\begin{array}{c|c} Capital & Le \ \hline Aye & 20,000\ Bee & 30,000\ Drawings & \ Aye & 8,000 \ Bee & 2,000 \ \text{Profit for the year} & 2,000\ \text{Interest on capital-6%} & \ \text{Interest on drawings - 10%} & \end{array})
Profit sharing is in the ratio of capital. The divisible profit is

A
Le 14,000
B
Le 12,000
C
Le 10,000
D
Le 8,000
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29

Use the following information to answer the question given.

(\begin{array}{c|c} Capital & Le\ \hline Aye & 20,000\ Bee & 30,000\ Drawings & \ Aye & 8,000 \ Bee & 2,000 \ \text{Profit for the year} & 2,000\ \text{Interest on capital-6%} & \ \text{Interest on drawings - 10%} & \end{array}).
Profit sharing is in the ratio of capital. Aye;s share of profit is

A
Le 6,000
B
Le 4,800
C
Le 4000
D
Le 3,200
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30

Use the following information to answer the question given.

(\begin{array}{c|c} Capital & Le\ Aye & 20,000\ Bee & 30,000\ Drawings & \ Aye & 8,000 \ Bee & 2,000 \ \text{Profit for the year} & 2,000\ {text{Interest on capital-6%} & \ \text{Interest on drawings - 10%} & \end{array})
Profit sharing is in the ratio of capital. Bee's share of profit is

A
Le 8,000
B
Le 6,000
C
Le 4,800
D
Le 3,200
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