2014 - WAEC Accounting Past Questions & Answers - page 1

1

The source document used to make entries in the purchase day book is

A
debt note
B
credit note
C
invoice
D
receipt
CORRECT OPTION: c

An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer.

2

A book that contains individual accounts of suppliers is the

A
purchase ledger
B
general ledger
C
nominal ledger
D
sales ledger
CORRECT OPTION: a

A bought ledger is a system in accounting by which a business records and monitors its creditors. The purchase ledger contains the individual accounts of suppliers from whom the business has made purchases on credit.

3

In the operation of an imprest of petty cash, the

A
petty cashier pays all expenses
B
petty cashier pays money to the accountant
C
petty cashier regularly begins each period with the same amount of money
D
main cashier accounts to the petty cashier for some experiences made by him
CORRECT OPTION: c

An imprest system is a Self-checking account where a fixed balance is maintained by regular replenishments and used for paying small, routine operating expenses. Also called Imprest account, Imprest fund, petty cash account, or petty cash fund,.

4

An example of a credit entry in a profit and loss account is

A
carriage inwards
B
carriage outwards
C
discounts allowed
D
discounts received
CORRECT OPTION: d

Discount  received  appear as a credit on  the Profit and Loss Account. Basically, the cash discount received journal entry is a credit entry because it represents a reduction in expenses.

5

Which of the following subsidiary books involves cash movements?

A
sales day book
B
purchases day book
C
returns inwards book
D
petty cash book
CORRECT OPTION: d

A petty cash is a cash book used to enter all small or petty expenses obtained. For example tea, Xerox copy etc. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and postage.

6

The accounting treatment for a dishonored cheque is; debit

A
customer's account; credit bank account
B
bank account; credit customer's account
C
customer's account; credit sales account
D
sales account; credit customer account
CORRECT OPTION: b

Treatment: Before any notice of cheque being dishonored: When a supplier (payee) receives a cheque from a customer(drawer) the supplier's cash book is debited and the customer's account in the sales ledger is credited with the amount of the cheque.

7

Net turnover is referred to as

A
purchases
B
assets
C
sales
D
profits
CORRECT OPTION: c

net turnover - is turnover before VAT and after trade discounts have been deducted.  A company may use net turnover to measure the total volume of sales 

8

Which of the following transactions will result in disagreement between the cash book and the bank statements?

A
selling of goods on credit to a customer
B
withdrawal of goods by the proprietor for his personel use
C
cheque paid directly into the bank account by a customer
D
omission of purchases received from a supplier on credit
CORRECT OPTION: c

A cheque payment is recorded in the cash book when the cheque is despatched. The bank only records such a cheque when it is paid by the bank, which may be several days later. Items such as interest may appear on the bank statement but are not recorded in the cash book as the business is unaware that they have arisen.

9

Purchase account is overcast by ₦200, while wages account is undercast by ₦200. This is

A
an error of omission
B
a compensating error
C
an error of commision
D
an error of principal
CORRECT OPTION: c

error of commission; is a mistake that consists of doing something wrong, such as including a wrong amount, or including an amount in the wrong place:  When a transaction has been miss-recorded either wholly or partially

10

Which of the following is used to record the disposal of a fixed asset?

A
journal proper
B
petty cash book
C
sales day book
D
purchase day book
CORRECT OPTION: a

The journal proper is in recording books with original entries used for miscellaneous credit transactions that do not fit into other recorded books. The journal is maintained like a simple journal to record opening entries, closing entries, transfer entries, adjustment entries,rectification entries, and rare transactions.

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