WAEC 2011 Financial Accounting Questions and Answer

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1. ï»¿The two fundamental books of accounts are

  • returns inwards and outwards.
  • journal and ledger.
  • discounts allowed and received.
  • credit note and debits note.

2. Which of the following is a capital expenditure?

  • Extension of building
  • Repairs of generator
  • Purchase of stock
  • Purchase of stationery

3. Expenses accrued at the end of the accounting year is treated in the balance sheet as

  • current assets.
  • current liability.
  • fixed assets.
  • long-term liability.

4. Another name for owner’s equity is

  • loan
  • debtors
  • capital
  • overdraft

5. The reduction in value of goodwill is

  • amortization.
  • appreciation.
  • depletion
  • depreciation.

6 Use the following information to answer questions 6 to 8.

 GHO 
1Opening stock4000
2Purchases12000
3Carriage inwards300
4Returns outwards322
5Sales20000
6Closing stock6000

The cost of goods sold is

  • GH0 16,300.
  • GH0 15,978.
  • GH0 10,022.
  • GH0 9,978.

7. The cost of goods available for sale is

  • GH0 16,300.
  • GH0 15.978.
  • GH0 10,022.
  • GH0 9,978.

8. The gross profit is

  • GH0 12,300.
  • GH0 11,978.
  • GH0 10, 022.
  • GH0 9,978.

9. Which of the following is not recorded in a Partnership Appropriation Account?

  • Interest on capital
  • Partners drawings
  • Share of profit
  • Interest on drawings

10. When a transaction is completely left out. from the books, it is an error of

  • Commission
  • omission.
  • principle
  • compensation.

11. Which of the following is not a subsidiary book?

  • Sales Day Book
  • Purchases Day Book
  • General Journal
  • Trial Balance.

12. In departmental accounts, rent is apportioned on the basis of

  • purchases
  • floor area occupied
  • number of personnel in each department
  • volume of sales

13. The document used in government accounting to show evidence of cash receipts and payments is the

  • budget
  • warrant
  • vote
  • voucher

14. Which of the following errors will affect the totals of a trial balance?

  • Compensating error
  • Complete reversal of entry
  • Error in addition
  • Error of original entry

15. Use the following information to answer questions 15 to 17. Okoro and Osula are in partnership sharing profits and losses in the ratio 3:2 respectively. Their respective capital were #40,000 and #15,000 and their drawings were #7,000 and #5,000. Interest on capital was 5% and interest on drawings was 10%. The net profit was #30,000. 15. Okoro’s share of the profit is

  • #17,070.
  • #16,070.
  • #11,380.
  • #10,000.

16. Osula’s interest on drawings is

  • #2,000.
  • #750.
  • #700.
  • #500.

17. The total interest on capital is

  • #4,000.
  • #2,750.
  • #2,000.
  • #750.

18. Which of the following is an example of a subsidiary book?

  • Cash book
  • Bank statement
  • Control accounts
  • Trial balance

19. Goods returned by the buyer is recorded in the seller’s books as

  • carriage inwards
  • carriage outwards
  • returns outwards.
  • returns inwards

20. The method of ascertaining capital from incomplete records is by preparing the

  • cash book
  • statement of affairs
  • suspence account
  • control account

21. A petty cashier operates with an imprest of D1,000 per week. At the end of the week he had disbursed D920. How much is needed to restore the imprest?

  • D1,920
  • D1,000
  • D920
  • D80

22. Accumulated fund is also referred to as

  • surplus
  • profit
  • deficit
  • capital

23. Subscriptions owed by members of a club is a/an

  • asset
  • liability
  • profit
  • surplus

24. Prime cost is derived by adding I. cost of raw materials consumed; II. indirect expenses; III. direct labour; IV. factory expenses; V. work-in-progress; VI. direct expenses.

  • I, II and IV only
  • I, 111 and VI only
  • IV, V and VI only
  • II, III and V only

25. The document from which entries are transferred to the purchases day book is the

  • waybill
  • credit note
  • receipt
  • invoice

26. A bookkeeper debited Motor Vehicle Account instead of Motor Expenses Account. This is an error of

  • Commission
  • original entry
  • complete reversal of entry
  • principle

27. John received a cheque from Dawda, a debtor, in payment for goods purchased by Dawda on credit. The transaction will be recorded in John’s

  • cash book and sales-ledger
  • nominal ledger and sales ledger
  • cash book and purchases ledger.
  • nominal ledger and purchases ledger.

28. Use the following information to answer questions 28 and 29.

1Prime cost6000
2Factory overheads6000
3Stock on 1/1/09 work in progress1000
4Stock on 31/12/09 work in progress2000
5returns inwards800
6sales20000

Cost of production is

  • #10,000.
  • #9,000.
  • #8,000.
  • #6,000.

29. Net sales for the period is

  • N20,000.
  • N20,800.
  • N19,200.
  • N10,000.

30. The total value received by a company as consideration for shares issued constitutes

  • paid-up capital
  • authorized capital
  • working capital
  • capital employed

31. The first calculating machine in data processing was

  • Abacus
  • Pascal
  • Punched cards
  • Digital

32. The going concern concept assumes that

  • every transaction is represented by a debit and credit entry
  • the currency must not change
  • the firm is a legal entity.
  • the business will continue.

33. Which of the following is not a purpose for which share premium may be utilized? A.

  • Issuing fully paid bonus shares
  • Writing off preliminary expenses
  • Settling salesmen commission
  • Providing for redeemable preference shares

34. A debenture is

  • a loan capital raised by a company
  • money given to a company as a gift
  • accured expenses
  • share capital

35. The concept which deals with the exclusion of trivial items in the accounting records is

  • consistency
  • going concern
  • materiality
  • money measurement

36. Which of the following is not an example of capital reserve?

  • Share premium
  • Retained profits
  • Surplus on revaluation of assets
  • Pre-incorporation profits

37. Goods sent to branch are recorded in the head office’s books at I. selling price. II. cost price plus markup percentage, ill cost price.

  • I and II only
  • I and III only
  • II and ill only
  • I, II and III

38. Computer memory sizes are measured in

  • kilometres.
  • kilowatts.
  • kilobytes.
  • centimetres.

39. Rent owed by a department is treated in the Balance Sheet as

  • asset of the business.
  • asset of the department.
  • liability of the business.
  • liability of the department.

40. When shares are issued to the public and the issuing company has not requested for payments, it is referred to as

  • authorized capital.
  • paid-up capital
  • uncalled capital.
  • unissued capital.

41. Use the following information to answer questions 41 and 42.

Ogogo’s sales ledger control account         DD  
Balance b/d                                             25180Discounts allowed                                                         1936  
Sales                                                         43220  Sales returns                                                                  1884  
Dishonoured cheque                                542Cash received from customers                                    Xxx  
68942Balance c/d                                                                  68942

Net sales is

  • D41,878.
  • D41,336.
  • D41,284.
  • D39,400.

42. The total cash received from customers is

  • D68,942.
  • D60,000.
  • D43.220.
  • D41,336

43. The diagrammatic representation of the workings of the computer program is

  • flow chart
  • desktop
  • keyboard
  • byte

44. The process of recording financial transactions of government is

  • Management Accounting
  • financial accounting.
  • cost accounting.
  • public sector accounting.

45. A bank statement shows a debit balance of Le 475. After the entry of an uncredited cheque of Le 800, the new balance is

  • Le 325 overdraft.
  • Le 325.
  • Le 1,275.
  • Le 1,275 overdraft.

46. The business entity concept

  • separates the owner’s transactions from the business transactions
  • records transactions outside the business
  • does not separate the owner’s transactions from the business transactions.
  • involves other business transactions

47. Which of the following is not used in Public Sector Accounting?

  • Cash Book
  • trial Balance
  • Profit and Loss Account
  • Bank Reconciliation Statement

48. The concept which states that assets are not to be recorded at their current market value is

  • money measurement
  • materiality
  • cost
  • entity

49. Provision for depreciation on delivery van is charged to

  • trading account.
  • profit and loss account.
  • appropriation account.
  • manufacturing account.

50. Which of the following date lines is correct for a profit and loss account?

  • For the year ended 31st December 2009
  • As at 31st December 2009
  • For the period 31st December 2009
  • As at the year 2009

ANSWERS

  1. B
  2. A
  3. B
  4. C
  5. A
  6. D
  7. B
  8. C
  9. B
  10. B
  11. D
  12. B
  13. D
  14. C
  15. A
  16. D
  17. B
  18. A
  19. C
  20. B
  21. C
  22. D
  23. A
  24. B
  25. D
  26. D
  27. C
  28. B
  29. C
  30. A
  31. A
  32. D
  33. C
  34. C
  35. C
  36. D
  37. A
  38. C
  39. C
  40. C
  41. B
  42. B
  43. A
  44. D
  45. A
  46. A
  47. C
  48. C
  49. B
  50. A

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