WAEC past questions and answers, Accounts, 2016

WAEC: Accounts, Objectives, Year 2016:

1. External users of accounting information include _______.

1. Employees
2. Management
3. Bankers
4. Directors

 

2. Every asset should have _______.

1. A non-monetary value
2. Tangible and Intangible qualities
3. Monetary cost and future benefit
4. An inadequate monetary value

 

3. Which of the following are impersonal accounts?

I. Investment   II. Creditors   III. Premises   IV. Debtors   V. Salaries

1. I, III and IV
2. I, III and V
3. II and IV
4. III and V

 

4. Nwoye buys stock and pays by cheque. The entries in the books of Nwoye’s Debit are _______.

1. Purchases; Credit cheque
2. Purchases; Credit bank
3. Bank; Credit purchases
4. Cheque; Credit purchases

 

5. Which of the following errors are errors of commission?

I. A cheque paid to Adam debited to Adams’s account.   II. Credit sales to Eva credited to sales account but debited to Eva’s account.   III. Furniture repairs debited to furniture account.   IV. Credit purchases from Manu credited to Manu’s account.

1. I and II
2. I and IV
3. II and IV
4. III and IV

 

6. A bank statement shows an overdraft of GHc 190,000. Kofi a debtor paid GHc 400,000 into the account. The new balance is _______.

1. GHc 590,000
2. GHc 590,000 Overdrawn
3. GHc 210,000
4. GHc 210,000 Overdrawn

 

7. A pretty cash account has an interest of GHc 6,000. If GHc 2,000 were left, how much will be reimbursed at the end of the period?

1. GHc 8,000
2. GHc 6,000
3. GHc 4,000
4. GHc 2,000

 

8. Cash paid to Jake, N2,500 was entered on the credit side of his account and debited to cash account. This is an error of _______.

1. Principle
2. Commission
3. Complete reversal of entries
4. Original entry

 

9. One of the purchases invoices of Mr. Dauda showed D96,240 less 12% trade discount and cash discount 20%. Since Mr. Dauda paid the amount due within the credit period, the amount paid is _______.

1. D 77,368
2. 73,157
3. 67,368
4. 63,157

 

10. Bank reconciliation statement is prepared to reconcile the differences between _______.

1. Bank statement and credit transfers
2. Cash book and bank transfers
3. Bank statement and cash transfer
4. Cash book and bank statement

 

11. Which of the following items of expense involves actual cash payment?

1. Discounts allowed
2. Provision for depreciation
3. Carriage outwards
4. Allowance for doubtful debts

 

12. In the preparation of the trading account of Omuya Ltd, the company included credit sales of N18,000 made during the year. The concept guiding this treatment is the _______.

1. Materiality concept
2. Dual aspect concept
3. Matching concept
4. Money Measurement concept

 

13. In accounting context, purchases refer to _______.

1. Goods bought and paid only
2. Goods bought for resale only
3. Goods bought on credit only
4. Goods bought to be used in the firm

 

14. Which of the following items is a current liability?

1. Stock of raw material
2. Cash in hand
3. Bills payable
4. Cash at bank

 

15. The balance sheet is prepared to reveal _______.

1. The result of the operations for the period under review
2. The financial position of the business
3. The arithmetical accuracy of the ledger accounts
4. The accruals and payment

 

16. The excess of cost of goods sold over net sales is _______.

1. Gross profit
2. Gross loss
3. Net profit
4. Net loss

 

17. Use the following information to answer this question.

• Rent prepaid – 1/01/2014 – N600
• Rent paid – 31/12/2014 – N3,000
• Rent prepaid – 31/12/2014 – N400

Rent for 2014 chargeable to the profit and loss account is _______.

1. N4,000
2. N3,000
3. N3,200
4. N2,800

 

18. Use the following to answer this question

• Rent prepaid – 1/01/2014 – N600
• Rent paid – 31/12/2014 – N3,000
• Rent prepaid – 31/12/2014 – N400

The balance sheet as at 31^st December 2014 will show _______.

1. Current asset of N600
2. Current asset of N400
3. Current liability of N400
4. Current asset of N600

 

19. Which of the following would result from an increase in the provision for doubtful debts?

1. A decrease in gross profit
2. A decrease in net profit
3. An increase in gross profit
4. An increase in net profit

 

20. Use the following information to answer this question.

• Acquisition cost of computers – Le 80,000
• Installation cost – Le 20,000
• Estimated residual value – Le 4,000
• Estimated useful life – 5 years

The depreciable value of computers is _______.

1. Le 80,000
2. Le 96,000
3. Le 100,000
4. Le 104,000

 

21. Use the following information to answer this question.

• Acquisition cost of computers – Le 80,000
• Installation cost – Le 20,000
• Estimated residual value – Le 4,000
• Estimated useful life – 5 years

The total costs of the computers is _______.

1. Le 80,000
2. Le 96,000
3. Le 100,000
4. Le 104,000

 

22. Which of the following expenses constitutes prime cost?

I. Direct labour cost   II. Factory overheads   III. Hiring of machine for production   IV. Warehouse rent

1. I and II only
2. I and III only
3. I, II and III only
4. I, II and IV only

 

23. Partly manufactured goods are treated in the balance sheet of a manufacturing company as _______.

1. Current assets
2. Fixed assets
3. Current liabilities
4. Long term liabilities

 

24. Use the following information to answer this question.

• Cash purchase – D 29,641
• Creditors 1/1/14 – D 2,473
• Creditors 31/12/14 – D 3,117
• Cash paid to creditors – D 127,345
• Discount received – D 4,211

The credit purchases are _______.

1. D 161,841
2. D 156,986
3. D 134,673
4. D 132,200

 

25. Use the following information to answer this question.

• Cash purchase – D 29,641
• Creditors 1/1/14 – D 2,473
• Creditors 31/12/14 – D 3,117
• Cash paid to creditors – D 127,345
• Discount received – D 4,211

The total purchases are _______.

1. D 161,841
2. D 156,986
3. D 134,673
4. D 132,200

 

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