WAEC past questions and answers, Accounts,2016, part 2

WAEC: Accounts, Objectives, Year 2016, Part 2:

26. Offei, a petty trader sold goods for GHc 36,240. The gross profit being 331/3% on cost. What is the cost price?

1. GHc 45,300
2. GHc 28,992
3. GHc 27,180
4. GHc 24,160

 

27. Which of the following is a credit item in an income and expenditure account?

1. Electricity
2. Donations
3. Stationery
4. Bar suppliers

 

28. Purchases of fixtures and fittings by a club are recorded in the _______.

1. Receipts and payments account only
2. Income and expenditure only
3. Receipts and payments account and balance sheet
4. Income and expenditure account and balance sheet

 

29. The concept which states that the affairs of a business are to be treated as being separate from the private activities of the owner is _______.

1. Realization concept
2. Business entity concept
3. Cost Concept
4. Dual aspect concept

 

30. Where fixed capitals are maintained in a partnership, share profits are _______.

1. Credited to partners capital account
2. Credited to partners current accounts
3. Debited to partners capital accounts
4. Debited to partners current accounts

 

31. In the absence of a partnership agreement, additional capital contributions by partners attract interest of _______.

1. 5%
2. 10%
3. 12%
4. 15%

 

32. In preparing partnership accounts, interest on drawings is debited to current accounts and credited to _______.

1. Capital account
2. Appropriation account
3. Drawings account
4. Profit and loss account

 

33. When allotments have been fully paid, subscribers are referred to as _______.

1. Allotters
2. Applicants
3. Non-members
4. Shareholders

 

34. Use the following information and answer the question below.

Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied paid in full.

The subscribed share capital is _______.

1. N300,000
2. N250,000
3. N200,000
4. N150,000

 

35. Use the following information and answer the question below.

Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied paid in full.

The unsubscribed share capital is _______.

1. N300,000
2. N250,000
3. N200,000
4. N150,000

 

36. Use the following information and answer the question below.

Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied paid in full.

The authorized share capital is _______.

1. N300,000
2. N250,000
3. N200,000
4. N150,000

 

37. The entries for credit sales at branch where the head office keeps all records are: Debit _______.

1. Branch stock account; credit branch debtors account
2. Branch debtors account; credit branch stock account
3. Branch debtors account; credit branch adjustment account
4. Branch adjustment account; credit branch debtors account

 

38. The branch current account records _______.

1. Head office transactions with the branch
2. Bank transactions with head office
3. Goods sent to branch at selling price
4. Cash received from branch as sales

 

39. The cost of goods returned by branch to head office id debited _______.

1. Branch stock adjustment account
2. Goods sent to branch account
3. Branch stock account
4. Branch profit and loss account

 

40. Which of the following is a source of local government revenue?

1. Excise duties
2. Market dues
3. Import duties
4. Loan and grants

 

41. The transfer of money from on sub-head to another in the public sector is ______.

1. Budgeting
2. Allocation
3. Virement
4. Vote

 

42. The total of the discount received column in the three column cash book is?

1. Debited to discounts received account
2. Credited to discounts received account
3. Debited to discounts allowed account
4. Credited to discounts allowed account

 

43. Which of the following expenses is apportioned between departments based on sales?

1. Discount received
2. Electricity
3. Carriage inwards
4. Carriage outwards

 

44. In the purchase of a business, a buyer has paid more than the value of the net assets of the business. The excess payment is referred to as _______.

1. Bonus
2. Goodwill
3. Net profit
4. Premium

 

45. Assets which are readily convertible into cash are termed as _______.

1. Liquid assets
2. Fixed assets
3. Intangible assets
4. Tangible assets

 

46. A loan to a company under the company’s seal is _______.

1. Fixed deposit
2. Mortgage
3. Bond
4. Debenture

 

47. Debts that a firm is unable to recover are debited to bad debts account and credited to _______.

1. Suppliers account
2. Sales account
3. Customers account
4. Cash account

 

48. When a fixed asset is disposed off, the accounting entries to write off the asset are Debit _______.

1. Profit and loss account; credit asset disposal account
2. Asset disposal account; credit profit and loss account
3. Asset disposal account; credit asset account
4. Profit and loss account; credit provision for depreciation account

 

49. The financial statement which is an expression of the accounting equation is the _______.

1. Trading account
2. Profit and loss account
3. Balance sheet
4. Statement of cash flow

 

50. Which of the following errors will affect the agreement of the trial balance?

1. Error of original entry
2. Error of commission
3. Error of transportation
4. Error of omission

 

Answers to WAEC Accounts past questions, year 2016

1. D   2. B   3. D   4. C   5. A   6. C   7. C   8. C   9. C   10. D

11. C   12. B   13. B   14. C   15. B   16. A   17. B   18. C   19. B   20. C

21. C   22. B   23. A   24. A   25. D   26. B   27. B   28. A   29. B   30. B 

31.  A   32. B   33. B   34. C   35. D   36. A   37. B   38. B   39. B   40. B  

41. C   42. B   43. D   44. B   45. A   46.D   47. A   48. A   49. C   50. C

 

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