WAEC 2014 Financial Accounting Questions and Answers

Your results on Financial Account 2014 are shown below

1. One of the differences between book keeping and accounting is that the former

records data while the latter interpretes
is regarded as the lanquage of the business while the latter ascertains its strenght
intrerpretes data while the latter records it
summarises information while the latter communicates it

2. The concept which states that revenue should be recognized at the point when the sales is deemed to have been made is

matching
consistency
realization
going concern

3. A cheque of N50,000 paid to sulaiman had been correctly entered in the cash book but had not been entered in sulaiman’s account.To correct this error,debit sulaiman’s account and credit

cash account
bank account
suspense account
purchase account

4. Aduke motors bought three toyota hilux vans on cash at the cost of N6,000, on debiting the vehicle account the corresponding credit for the purchase will appear in the

sales day book
purchase day book
salees subsidiary book
cash book

5. Which of the following affects the accuracy and the authenticity of the trial balance

error of ommission
error of commission
error of tranposition
error of original entry

6. A ledger is classified into

private, sales and purchase
personal, general and private
general, private and sales
sales, purchases and general

7. The book of account in which information from the source documents are recorded consist of

debit and credit note
ledger and subsidiary books
prepayment and accruals
profit and loss and balance sheet

8. The accounting entries to record a cheque issued by a business is to

debit cash book and credit drawer
credit cash book and debit drawer
debit cash book and credit suspense account
credit cash book and debit suspense account

9. Given: if Emenike Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 12½%. Assuming N22,800 worth of goods were purchased and settled when within 5 days ,what will be the amount to be credited in the cash column of the company’s, cash book?

N25,650
N22,800
19,950
18,240

10. The major advantage of an imprest system is that it is

ensures a proper accountability for every expenditure
train the young accountants in the preparation for greater responsibility
relieves the chief cashier of the numerous petty cash payments
serves as an analysis column for every expenses

11. Petty cash book records transactions on

the debit side only
the credit side only
both credit and debit sides
reversed entry

12. A major way by which the headquaters guard against fraud in branches on cash remmittance is through the introduction of

imprest system only
direct purchase by branch
separate accountant for the branch
credit sales by only the headquaters

13. I cash sales, II cash purchases, III cash discount allowed IV cash payment V cash receipts. which of the following are recorded on the debit side of the cash book

i and ii
i and iii
i and v
i and iv

14. An item credited in the bank statement but yet to be recorded in the firm’s cash book is

bank loan
contract payment
standing order
direct deposit

15. The formula for calculating depreciation using the straight line method is

net profit
gross margin
total purchases
total sales

16. If goods were brought from tanko at a cost of price of N9,000 with acash discount of 5%, how much will be paid assuming prompt payment was made

N4,500
N8,550
N9,000
N9,450

17. If machine X cost N600,000 with anticipated life span of five years and estimated scrap value of N50,000 using straight line method;depreciation charged for two years will be

#700.000
#240,000
#220,000
#202,000

18. Use the information below to answer question 20 and 21 balancs sheet extract, creditors 7,940, prepaid expenses 290,accrual expenses 323, stock,4,500, cash balances 4,956, debtors 905.The value of the current asset will be

#10,361
#10,651
#17,396
#17,848

19. Determine the current liabilities

#8,553
#8,263
#7,940
#1,228

20. The excess of sales over cost of goods sold is

gross sales
gross profit
net profit
net sales

21. Use the information below to answer question 23 and 24. 2/3 purchases 900 books at #1,000 each,4/3 purchases 590 books at #950 each, 15/3 sales 300 books at #900 each.Determine the cost of goods sold using LIFO

#285,000
#300,000
#570,000
#600,000

22. Calculate the cost of goods available for using LIFO

#801,000
#1,100,500
#1,160,500
#1,175,500

23. The control account is used in facilitating

the locations of errors in the various accounts
up to date bank transactions
the payments of debt and liabilities of the firm
assets distribution with respect to income

24. A book of account that possesses the features of both daybook and ledger is

sales day book
cash book
purchases day book
returns day book

25. The value of the sales ledger control account is derived from the summation of

the total debtors account
the total creditors account
all day books
both the debtors and the creditors account

26. Subscription in arrears is treated in the balance sheet of a club as

#30,000
#40,000
#50,000
#60,000

27. Use the information to answer question 30 and 31. 31/12/ 2009 subscription accrued #18,900,subscription received in advance #16,400, subscription received during the year 2009 #38,570. determine the amount of subscription for the year

#57,470
#41,070
#40,210
#35,300

28. What is the amount of subscription to be shown as liability in the balance sheet as at dec. 2009?

#14,200
#16,400
#18,900
#20,500

29. What is the total income for the period

#13,890
#13,500
#10,500
#9,500

30. What is the balance carried down?

#11,680
#11,930
#12,330
#13,430

31. Given:sales 180,000,stock 1/1 25,000, purchases 110,000, sales returns 1,000, purchases returns 1,500, gross profit 58,000. Determine the value of stock as at 31st dec

#8,000
#9,500
#12,500
#15,500

32. In a departmental account, the expenses to be apportioned on the basis of turnover is

carriage inwards
returns outward
discount received
carriage outwards

33. In a departmental account , where no basis of apportionment exist, apportionment is

on profit basis
according to employee decision
according to material available
on equal basis

34. If goods are sent to branch at 25% on cost, what will be the cost of goods sent to the branch at a sellling price #100,000

#130,000
#125,000
#80,000
#75,000

35. Use the information below to answer question 38 and 39. hussaina enterprises sent goods worth #800,000 at cost plus mark up of 25% to its branch. what is the cost price of goods sent to the branch?

#600,000
#620,000
#640,000
#700,000

36. Determine the profits on the goods sent to the branch at profit margin of 25% mark up

#150,000
#160,000
#170,000
#180,000

37. In the absence of partnership deed, the act stipulates that

an amount should be fixed as salary for the partner
interest on partners loan should be 25%
interest should not be allowed on partners drawings
profits and losses should not be shared equally

38. The profit of a branch is usually credited to the

adjustment account
head office sales account
branch office goods account
head office current account

39. Where partnership is converted into a small limited liability company,current account balances of partners are transffered to a

realization account
savings account
share capital account
capital account

40. The expenses incurred in purchasing a vehicle is a

revenue expenditure
capital expenditure
recurrent expenditure
concurrent expenditure

41. Payment for shares in excess of amount offered gives rise to

subscription in advance
revenue reserves
capital reserves
calls in advance

42. The details of the share capital which a company is authorized to issue is contained in the

articles of association
companies and allied matters act
memorandum of association
share capital certificate

43. #800,000 worth of ordinary shares of 50k were issued at #1 each , payable in full on application. the entry in the cash book would be to

credit #1,600,000
debit #1,600,000
credit #800,000
debit #800,000

44. Use the information below to answer questions 47 and 48. Oil and buns issued to the public #1,300,000 ordinary share of 75k at a price of #1.50k,application and allotment were received for 900,000 shares at 25k each. Determine the amount recceived on application and allotment

#224,950
#225,000
#324,950
#325,000

45. The book value of issued shared capital is

#675,000
#975,000
#1,350,000
#1,950,000
46. The account of government into which all monies are received and from which all expenditure are disbursed is the
federal account
petroleum technology development fund
central bank account
development fund

47. In government accounting, the method used which records on the basis of financial entity with self balancing books instead of entity on proprietorship is

virement
fund accounting
consolidated fund
financial regulation

48. Which of the following is the basic accounting equation?

Assets = Capital + Liabilities
Capital = Assets + Liabilities
Liabilities = Assets + Capital
Assets = Liabilities – Equity

49. In partnership business, the net profit serves as opening figure for

trading accounting
profit and loss account
current account
appropriation account

50. Which of the following is a debit entry in debtors control account?

credit sales
bad debts
returns inwards
discounts allowed

ANSWERS

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