2014 - WAEC Accounting Past Questions and Answers - page 5

 A profit and loss account will include your credits (which includes turnover and other income) and deduct your debits (which includes allowances, cost of sales and overheads). These are used to find your bottom line figure – either your net profit or your net loss.

A budget is an estimation of revenue and expenses over a specified future period of time; it is compiled and re-evaluated on a periodic basis.

The manufacturing account is an account in the general ledger which is used to accumulate all the manufacturing costs of goods completed by a business during an accounting period. It is used by firms involved in the production and sales of goods

Examples of factory overhead costs include: indirect materials, indirect labor, depreciation of the factory equipment and plant, amortization of patents, the cost of small tools used, factory utilities, insurance on the factory and equipment, property taxes on plant and equipment, property taxes on materials and goods

Database - is an integrated collection of logically related records or files.  A database consolidates records previously stored in separate files into a common pool of data records that provides data for many applications.

The double entry principle of bookkeeping states that, for every credit entry, there must be a corresponding debit entry and vice versa