WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2018 (SSCE WAEC MAY/JUNE 2018 FINANCIAL ACCOUNTING)

WASSCE FINANCIAL ACCOUNTING MAY/JUNE  2018 (SSCE WAEC MAY/JUNE 2018 FINANCIAL ACCOUNTING)

1. Investors in a business are mainly in the firm's

A. liquidity

B. debt

C. management

D. profitability

 

2. One of the characteristics of useful accounting information is

A. Profitability

B. comparability

C. efficiency

D. liquidity

 

3.  Which of the following items is found is found on the debit side of a trial balance?

A.  Provision for doubtful  debts

B. Discount allowed

C. Discount received

D.  Returns outwards

 

4. Which of the following transaction is a revenue expenditure?

A.  Purchase of a plant

B. Purchase of a new engine

C. Construction of office wall

D. Purchase of fuel for vehicle

 

5.  Credit note received are source document for

A. Return inward Journal

B. Return Outward Journal

C.  Purchase Journal

D.  Sales Journal

 

6.  A document forwarded to a supplier showing amount due for unsatisfactory goods is

A. Debit Note

B, Credit Note

C. Invoice

D. Waybill

 

7.  A claim  of a proprietor of a business  entity on its assets is

A. liabilities

B. capital

C. drawings

D. funds

 

8.  The appointment of cost of a fixed asset to the profit and loss account is termed as

A. expense

B. depreciation

C. loss

D. appreciation

 

9. Entries  in the purchases journal are transferred to the

A.  receivable ledger

B. payable ledger

C. general ledger

D. private ledger

 

10. A reduction in price to encourage prompt  payment is

A. trade discount

B. quantity discount

C.  cash discount

D. seasonal discount  

 

Use the following information to answer question 11 and 12

Tei Ltd offered 1,560 units of a magazine at N60.00each Trade discount is 10% and cash discount is 10% within  30 days and 5% within 60 days

 

11.The amount payable if payment is made on the 40th day is

A. N88, 920

B.N84, 240

C. N80,028

D. N72,025

 

12. The cash discount allowed on the 50th day is

A.N9,360

B. N8,424

C. N4,680

D.  N4,212

 

13.  An amount of Le 2000 received from a customer Kofi has been credited to another customer, kofigo's account . This is an error of

A. principle

B. commission

C.  original entry

D. fixed capital

 

14. A debit balance of GH¢420 on the purchase Ledger Control Account means that as at that date

A. trade creditors has been overpaid by GH¢420

B. trade creditors are owed GH¢420

C.  goods returned  on trade creditors amounted to GH¢420

D. total supplies from trade creditors amounted GH¢420

 

15. Sales and Purchases

Use the following information to answer question 23 and 24

 

Le

Sales

120,000

Purchases

100,000

Opening stock

10,000

Closing stocks

20,000

 

17. Which of the following activities will increase profit

A. Depreciation charges

B. Reduction in provision for doubtful debts

C. Undervaled closing stock

D.  Returns inwards

 

18.  The concepts that implies that a business will operate for an indefinitely long period of time is

A. accrual concept

B. going concern concept

C.  business entity concept

D.  periodicity concept

 

19. The consistency concepts aim at

A. ensuring that all expense are matched against revenue

B.  reducing cost

C. comparability of accounting records

D.  suppressing profits to be declared

 

20.  The concepts which state that revenue is recongised when goods are sold is

A. Realisation concept

B. Matching concept

C. Periodicity concept

D. Going concern concept

 

21. Cost of goods sold is calculate as

A. opening stock + sales - closing stock

B. Opening stock + sales - closing stock

C.  opening stock + purchase + closing stock

D. opening stock + sales + closing stock

 

22. The wages of an office cleaner is classified  as

A. direct labour cost

B. direct expenses

C.  factory overheads

D. administrative overheads

 

23. The cost of goods solds is

A. Le 120,000

B. Le 110,000

C.  Le 90,000

D. Le 30,000

 

24.  The gross profit or loss is

A. Le 30,0000 gross profit

B. Le 20,000 gross profit

C.  Le 10,000 gross loss

D. Le 30,000 gross loss

 

25. The amount set aside out of profit to strengthen the financial position of the business

A. provision

B. reserve

C. depreciation

D. Surplus

 

26.  A fall in the value of a fixed asset due to technological changes is described as

A. superfluity

B. wear and tear

C. obseolescence

D. surplus

 

27. A credit entry is made in the plant and Machinery Account for the

A. purchase of an additional plant and machinery

B. Sales of plant and machinery

C. maintenance of plant and machinery

D. appreciation of the plant and machinery

 

28.  In a manufacturing account royalties paid is

A. debited to the trading account

B. credited to the profit and loss account

C. credited to the manufacturing account

D. debited to the manufacturing account

 

29.  One of the component of factory overhead is

A. raw material consumed

B. manufacturing wages

C. carriage inwards

D. depreciation of plant and machinery

 

Use the following information to answer 30 and 31

 

 

GH¢

Direct material used

64,000

Direct labour

30,000

Production overheads

22,000

Work in progress at beginning

9,000

Work in progress at close

14,000

 

30.  Total cost of production is

A. GH¢94,000

B. GH¢106,000

C.  GH¢111,000

D.  GH¢116,000

 

31.  Prime cost of production is

A. GH¢64,000

B. GH¢94,000

C. GH¢ 111,000

D.GH¢116,000

 

32.The balance on the sales ledger control  account at the end of the accounting year represents total  

A. trade debtors at the end of the year

B. cash sales of the year

C. credit sales for the year

D. amount transferred from the sales journal

 

Use the following information to answer 33 and 34

 

01/01/2016

D

31/12/2016

D

Trade debtors

80,000

100,000

Trade creditors

30,000

40,000

Stock

70,000

90,000

 

 

 

Cheques received from trade debtors in 2016: D350,000

Payment made to trade creditors in 2016:         D220,000

33. Credit sales for 2016 is

A. D530,000

B. D 230,000

C.  D220,000

D. D210,000

35. The excess of assets over liabilities  of a not-for-profit making organization is

A. Surplus

B. deficit

C. working capital

D.  accumulated fund

 

Use the following information to answer question 36 and 37

Receipts and Payments : 31st December 2016

 

 

 

N

 

N

Cash at bank

460

New Equipment

200

Subscription

520

Cleaners' wages

540

Donations

500

Stationery

140

Sales of tickets

490

Repairs

110

Entrance fees

670

 

 

 

36.  The surplus for the year is

A. N1,970

B. N1,890

C. N1,690

D.  N1,390

 

37.  The total income received for the year is

A. N2,640

B. N2,180

C. N1,890

D.  N1,690

 

38.  The parties who are paid last in the event of winding-up are

A.  preference shareholders

B. debenture holders

C.  ordinary shareholders

D. trade creditors

 

39.  An event that will not require a change in the profit- sharing ratio of partners in a firm is when

A. a partner dies

B. a partner retires

C. a new partner is admitted

D. partners assets value appreciates

 

Use the following information to answer 40 and 41

 

N

Net profit

17, 460

CapitalAccount: Taiwo

                            Obi

50,000

40,000

Drawings Account: Taiwo

                                 Obi

12,000

10,000

Salary - Obi

1,500

Interest on capital

5%

Interest on drawings

4%

Profit sharing ratio is 3 : 2 for Taiwo and Obi respectively

 

 

 

 

40. Taiwo's share of profit is

A. N8,960

B. N7,404

C. N4,936

D. N3,296

 

41. Obi's share of profit

A. N8,960

B. N7,404

C. N4,936

D. N3,296

 

42.  The accounting entries for cash realized from the sale of assets on dissolution of partnership is debit

A. Cash Account; credit Partner Capital Account.

B. Asset Account; credit partners Capital Account

C. Cash Account; Credit Realisation Account

D. Realisation Account; credit Cash Account.

 

43.  The process of distributing shares to successful applicants is

A. allocation

B.  apportionment

C. allotment

D. application

 

44.  The process of distribution shares to successful applicant is

A. allocation

B. apportionment

C. allotment

D. application

 

45.The basis of apportionment  of insurance on building in departmental accounts is

A. floor space occupied by the department

B. Purchase cost of the building

C.  value of the building

D. number of office in the building

 

46.  Under the cost method in Branch Accounts, branch gross profit is disclosed in the

A. Goods sent to Branch Account

B. Branch Debtors Account

C. Branch stock Account

D.  Branch stock Adjustment Account

 

 

Use the following information to answer question 47 and 48

 

Le

Ordinary share capital

70,000

Retain earning

31,142

Motor vehicle at cost

21,136

Accumulated depreciation-motor vehicle

7,109

Furniture and Fittings at cost

1,334

Furniture of fittings

1,007

Stock

32,200

Debtors

49,380

Banks

15,953

Creditors

11,329

 

47. Equity holder fund is

A. Le 112,471

B. Le 111,834

C. Le 101,142

D. Le 70,000

 

48. Net book value of fixed assets is

A. Le 22,480

B.  Le 21,136

C.  Le 14,354

D. Le 14,027

 

49.  The authority to incur expenditure in the public sector is

A.  warrant

B.  vote

C. budget

D. voucher

 

50. Below-the-line item in public sector accounting means such an item is

A. not budgeting for in the current fiscal year

B. budgeted for in the current fiscal year

C.  to be carried forward to the next fiscal year

D. less than what is budgeted for

WAEC SUBJECTS: 
Year of WASSCE EXAM: