WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2010 (SSCE WAEC MAY/JUNE 2010 FINANCIAL ACCOUNTING)

WASSCE FINANCIAL ACCOUNTING MAY/JUNE  2010 (SSCE WAEC MAY/JUNE 2010 FINANCIAL ACCOUNTING)

1. Which of the following is not an external user of accounting information?

A. management

B. creditors

C. shareholders

D. government

 

2. A trial balance is prepared to

A. detect fraud

B. ascertain losses in a trading period

C. determine opening capital

D. test arithmetical accuracy of ledger entries

 

3.Which of the following is the reason why a seller allows a customer cash discount?

A. agreement to become a regular customer

B. introducing a new customer to the seller

C. settlement of account within a stated period

D. placing a larger order

 

4. A ledger is a

A. principal book of accounts

B. book of original entry

C. recoed of credit transactions

D. summary of entries

 

5. Which of the following is not found in a trial balance?

A. opening stock

B. closing stock

C. capital

D. rent paid

 

Use the following information to answer the question given

 

6. Cash balance at 5/1/08 is

A. ₦50,000

B. ₦40,000

C. ₦35,000

D. ₦30,000

7. Balance in Purchases account at 5/1/08 is

A. ₦23,000

B. ₦18,000

C. ₦10,000

D. ₦8,00

 

8. Balance in the Capital Account at 5/1/08 is

A. ₦60,000

B. ₦50,000

C. ₦35,000

D. ₦5,000

 

9. A suspense Account is used to

A. correct errors

B. record errors detected until corrected

C. prepare the balance sheet

D. extract the trial balance

 

10. Which of the following is added to the proprietor's capital?

A. Net profit

B. gross profit

C. net sales

D. gross sales

 

11.  Where a wrong figure occurs in only one account with the second figure correctly stated, this is an error of

A. transposition

B. compensation

C. omission

D. commission

 

12. A temporary difference of bank occurs in only one account with the second figure stated, this is an error of

A. adjustment account

B. suspense account

C. imprest account

D. appropriation account

 

13. In the preparation of bank reconciliation statement cheque are

A. added to the balance as per bank statement

B. deduced from the the balance as per bank statement

C. added to the balance as per bank statement

D. ignored totally

 

14. Which of the following in the found in the general ledger?

A. capital account

B. sales accounts

C. loan account

D. drawings account

15

Use the following information to answer the given questions 15 and 16

15. What is the amount of the new provision for bad debts?

A. D130

B. D127

C. D124

D. D120

 

16. Use the following information to answer the given question

The provision for bad debts in the profit and loss account is

A. D187

B. D127

C. D67

D. D60

 

17. The balance in a sales Ledger control Account indicates the

A. difference between debtors and creditors

B. total sales

C. total purchases

D. total debtors

 

18. Sales was D12,500, total expenses was D2,500 and net profit is 10% of sales what is the gross profit?

A. D11,250

B. D8,750

C. D3,750

D. D1,250

 

19. Which of the following is the equivalent of the receipts payment accounts?

A. income and expenditure accounts

B. cash book

C. subscriptions account

D. profit and loss account

 

20. Subscriptions received in advance are

A. included in the income and expenditure account

B. not included in the receipts and payment account

C. shown as a current asset in the balance sheet

D. shown in the Balance Sheet as a current liability

21. Where records maintained are inadequate to facilitate the preparation of a trading and profit and loss accounts, this is described as

A. cost accounting

B. bookkeeping

C. incomplete records

D. double entry

Use the following information to answer given question

 

22. The value of raw material consumed is

A. ₦121,440

B. ₦113,390

C. ₦111,190

D. ₦101,190

 

23. The prime cost is

A. ₦151,190

B. ₦199,190

C. ₦169,190

D. ₦146,190

 

24. The total overhead expenses is

A. ₦142,000

B. ₦151,000

C. ₦110,000

D. ₦92,000

 

25. Bad debts written off is shown as

A. debit in the sales ledger

B. debit in the purchases ledger

C. credit in the sales ledger

D. credit in the purchases ledger

 

26. The balance of the sales ledger control account represents

A. total sales

B. total credit sales

C. to creditors

D. total debtors

 

27. The accounting principle that states that insignificant expenditures are not to be taken into account is the

A. realization concept

B. materiality convention

C. marching concept

D. consistency convention

 

28. Which of the following transaction will increase the working capital of a business

A. payment in cash to a creditor

B. Payment by cheque to a creditor

C. sales of fixed asset in cash

D. Cash received from debtors

 

29. The realization concept states that

A. revenue is recognized as being earned when ownership of goods passes to the customer

B. revenue and profit should not be anticipated

C. similar way from one accounting period to another

D. transaction must be expressed in monetary term

 

30. Where fixed capitals are maintained, partners' drawings are transferred to the

A. credit capital account

B. debit of capital accounts

C. credit of partners’ current accounts

D. debit of partners' currents account

 

31. The method that provides a reliable a reliable check upon cash and stock at the branch and discloses the gross profit in the account is

A. cost plus percentage

B. cost price

C. average cost

D. selling price

 

32. A partners whose liability goes beyond his capital is known as

A. dormant partner

B. limited partner

C. general partner

D. nominal partner

 

Use the following information to answer the given question 33 to 35,

 

33. Aba's share of profit is

A. ₦21,504

B. ₦19,792

C. ₦18,352

D. ₦16,128

 

34. Baba's share of profit is

A. ₦16,128

B. ₦14,844

C. ₦13,764

D. ₦18,080

 

35 The rate of interest on capita; is

A. 15%

B. 10%

C. 8%

D. 5%

 

36. Carriage inwards is shown on he

A. debit side of the trading account

B. credit side of the trading account

C. credit side of the profit and loss account

D. debit side of the profit and loss account

 

37.  An expense is termed an “accrual” because it

A. is yet to be paid for

B. is a profit and loss account

C. must appear in the balance sheet

D. is a trading account item

 

38. The accounting treatment when goods are sent to branch at a cost is, debit branch stock account and credit

A. branch stock adjustment account

B. goods sent to branch account

C. branch debtors account

D. branch profit and loss account

 

39. The document prepared for disbursement of government fund is

A. An invoice

B. a receipt

C. a payment voucher

D. a bill

 

40. A financial plan of action expressed in monetary terms is a/an

A. warrant

B. budget

C. imprest

D. consolidated fund

 

41. Which of the following reserves is not used for bonus shares?

A Revaluation shares

B. Share premium

C. Capital redemption reserves fund

D. General reserves

 

42.  The accounting concept which assumes that the business will continues to be

A. Dual aspect

B. business entity

C. accrual

D. going –concern

 

43. When shares are sold “at par” it means they are issued at

A. the market value

B. the nominal value

C. a discount

D. a premium

 

44. Which pf the following does not form part of shareholders’ funds

A. Ordinary shares

B. store premium

C. Profit

D. Debentures

 

Use the following information to answer question 45 and 46

On 1/7/07, a trader owed wages of Le 2,000. During the year ended 30/6/08, wages of Le, 2,400 were owed and Le 8,000 were paid.

 

45. The wages of the year ended  30/6/08 is

A. Le 12,400

B. Le 8,400

C. Le 8,000

D. Le 7, 600

 

46. The wages recorded in the balance sheet as at 30/6/08 is

A. Le 8,000

B. Le 6,000

C. Le 2,400

D. Le 2,000

 

47. The collection and organization of data is

A. accounting process

B. central processing

C. data processing

D. data manipulation

 

48 Money receiving from a customer is recorded in the customer’s account and bank account; the accounting concept applied is

A. business entity

B. dual aspect

C. going-concern

D. money measurement

 

49. The amount for which a business is sold is that

A. goodwill

B. consolidated fund

C. purchase consideration

D. capital reserve

 

 

50. Which of the following is a prime cost?

A. royalty

B. salary

C. commission

D. discounts allowed

WAEC SUBJECTS: 
Year of WASSCE EXAM: