2014 - WAEC Accounting Past Questions and Answers - page 4
The accounting ratio used to measure the average number of days for which suppliers remain unpaid is
The Creditor (or payables) days number is a similar ratio to debtor days and it gives an insight into whether a business is taking full advantage of trade credit available to it. Creditor days estimates the average time it takes a business to settle its debts with trade suppliers.
When the purchase consideration exceeds the value of business, the difference is
Goodwill is an intangible asset associated with the purchase of one company by another. It is a company's value that exceeds its assets minus its liabilities.
An example of input devices of a computer is
Example of input devices are
- Keyboard.
- Mouse,
- Joystick
- Light Pen,
- Track Ball, Scanner, Digitizer, Microphone,
- Magnetic Ink Card Reader(MICR)
- Optical Character Reader(OCR)
- Bar Code Reader
- Optical Mark Reader(OMR)
The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is
The materiality principle states that an accounting standard can be ignored if the net impact of doing so has such a small impact on the financial statements that a reader of the financial statements would not be misled.
A company made a net profit of ₦2,000,000 for the year and its net profit percentage is 25%. What is the total sales for the year?
Which of the following information is recorded in the returns outwards book?
Returns outwards are goods returned by the customer or business to the supplier. For the supplier, this results in the following accounting transaction: A debit (reduction) in revenue in the amount credited back to the customer.
\(\begin{array}{c|c} \text{Branch stock account (at selling price)} & D346,000 - debit \ \text{Branch mark-up account} & D62,000 - credit \end{array}\)
Calculate the stock figure to be included in the balance sheet at the year end
\(\begin{array}{c|c} \text{Branch stock account (at selling price)} & D346,000 - debit \ \text{Branch mark-up account} & D62,000 - credit \end{array}\)
The concept applied in calculating the stock figure to be included in the balance sheet at the year end is
subscription in advance is classified in the balance sheet as
When a company receives money in advance of earning it, the accounting entry is a debit to the asset Cash for the amount received and a credit to the liability account such as Customer Advances or Unearned Revenues. The subscription in advance is a liability because it is a future earning that will be due in future, it means the company is owing outsiders the said amount tied to the payment.