WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2019 (SSCE WAEC MAY/JUNE 2019 FINANCIAL ACCOUNTING)

WASSCE FINANCIAL ACCOUNTING MAY/JUNE  2019 (SSCE WAEC MAY/JUNE 2019 FINANCIAL ACCOUNTING)

1. A quality of accounting information is that it should be

A. profitable

B. verifiable

C. appreciable

D. depreciable

 

2. When the letter "C" is written in front of an entry in the folio column of a cash book is shows a

A. double entry

B. cash entry

C. contra entry

C. journal entry

 

3. To show the evidence of payment to a government ministry, the revenue collector issues a

A.  receipt voucher

B.  payment voucher

C.  treasury receipt

D.  treasury card

 

4. Te primary concerns of shareholders in a business is the

A.  ascertainment of taxable profit

B. dividend payable

C.  ability to pay interest

D. welfare of employees

 

5.   In a not for profit organization, accumulated fund is

A. current assets plus fixed assets less total liabilities

B.  long term liabilities  plus current liabilities

C.  fixed assets plus current assets plus long term liabilities

D. fixed assets less long term liabilities  less current liabilities

 

Use the following information to answer question 6 and 7

           

01/01/17

N

31/12/17

N

Trade creditors

630,000

780,000

Stock

540,000

480,000

Cash paid to trade creditors in 2017 was N2,700,000

 

6. Purchases for 2017 was

A.  N3,480,000

B.  N2,850,000

C.  N2,700,000

D. N2,550,000

 

7. The cost of goods sold was

A. N3,330,000

B. N2,910,000

C. N2,760,000

D. N2,610,000

 

8. In public sector  accounting salaries of employee is classified as

A. capital expenditure

B. capital receipt

C.  recurrent expenditure

D. recurrent receipt

 

9. Kadiri  paid his debt to Suleman by cheque. The accumulating  entries  in Kadiri's book are debits

A.  Bank Account; Credit Suleman's Account

B.  Bank's Account; Credit Debtors' Account

C. Suleman's Account; credit Bank Account

D.Suleman Account; credit Cash Account

 

10,  The concept which seeks to prevent profits from being overstated is

A. materiality

B. consistency

C. prudence

D.  periodicity

 

Use the following information to answer question 11 and 12

April 11: Sold goods for cash N50,000

April 20: Bought goods for cash N30,000

April 26: Bought postage stamp N5,000

April 28: Cash sales N49,000

April 30: Cash purchases N11,000

April 30: Paid salaries N18,000

 

11.Total cash receipts for the period is

A. N99,000

B. N64,000

C. N50,000

D. N35,000

 

12.  The cash balance at the end of the period is

A. N99,000

B. N64,000

C.  N35,000

D. N34,000

 

13.The  directors of Olu Ltd recommended  a dividend of 10% on 1,000,000 ordinary  share capital  of GH¢ 2.00 each. The amount of dividend declared is

A.  GH¢ 200,000

B. GH¢ 100,000

C. GH¢ 20, 000

D. GH¢ 10,000

 

14. Goodwill is recognized in partnership when

 A.  the business  makes a huge profit

B. the business has adequate bank balance

C. a partner is dormant

D. a new partner is admitted

 

15.   The mark up on a product is 2/3. The margin is

A.  3/5

B. 2/5

C. 1/3

D.  2/9

 

16.  Quick ratio is calculated is calculated x : y: z

A. x = stock, y = current asset and z = long term liabilities

B. x = current assets, y = debtors and z = current liabilities

C. x = current assets, y = stocks and z = current liabilities

D. x = debtors, y = stocks and z = current assets

 

Use the information to answer question 17 and 18

 

 

D

Opening capital

10,800

Drawings

2,500

Trade creditors

2,500

Trade debtors

2,880

Cash in hand

1,000

Net profit

6,000

 

17.  The closing capital  is

A. D16,800

B. D14,300

C. D8,300

D. D7,300

 

18.  The working capital is

A. D 6440

B. D 3880

C  D 3500

D. D 1320

19.  In a single-entry  accounting ,purchases are ascertained using

A. A trading  account

B. debtors  control account

C. statement of affairs

D. creditors' control account

 

20. Goods brought  from Samah for Le 1,600 was entered into Shamil's Account. This is an error of

A.  compensation

B. Commission

C. original entry

D.  principle

 

21.When closing stock is undervalued , the cost of goods sold  would be

A. overstate and the gross profit understand

B.  understated and the gross profit overstated

C. overstated and the gross profit overstated

D. understated and the gross profit understated

 

22.  Where fixed capital account is maintained, partners' share of profit is transferred to the

A. debit side of capital account

B. credit side of capital account

C. credit side of partners' current account

D. debit  side of partner's current account

 

23. When  bank  charges are deducted from a customer's account the balance on the bank statement would be

A. more than the cash book balance

B. less than cash book balance

C.  equal to the cash book balance

D. added to the cash book balance

 

24.  Companies issue shares to the public in order to

A. reduce the number of directors

B. reduce the number of shareholders

C. raise capital

D. generate profit

 

25. Sulah took two textile materials worth GH¢500 from his business for his children's use. This would be treated as

A. loan

B. stock

C. drawing

D. sales

 

Use the following information to answer 26 to 28

Ajeto and Ogah were in partnership sharing profit and losses in the ratio  2:3.  Interest on capital and drawing were 5% and 3% respectively. The following details relate to the partnership for the 2017.

 

Ajem

GH¢

Ogah

GH¢

Capital Account

60,000

65,000

Current Account

40,000

65,000

Drawing

20,000

50,000

Salary

10,000

30,000

Net profit was GH¢ 100,000

26.  Ogah's share of profit was

A. GH¢ 51,150

B. GH¢ 50,250

C. GH¢ 34,100

D GH¢ 33,500

 

27.  Ajato's current  balance was

A. GH¢ 65,000

B. GH¢ 60,000

C. GH¢ 42,000

D. GH¢ 40,000

 

28. Interest on drawing  amounted to

A. GH¢ 6,000

B. GH¢1,500

C. GH¢ 900

D. GH¢ 600

 

29.  Debtor Control Account is kept in the

A. Sales ledger

B.  nominal ledger

C. personal ledger

D. general ledger

 

 

30.  Where there is provision for depreciation , fixed asset is shown in the balance sheet as

I. cost less depreciation for the period only

II. cost less total depreciation to date

III.  written down values

A. I only

B. II only

C.  I and II only

D.  I and III only

 

31,  The partners whose liability goes beyond his capital is a

A. nominal partner

B. general partner

C. limited partner

D. dormant partner

 

32. An effect of increase in the provision for depreciation is

A.  decrease in gross profit

B. increase in net profit

C.  increase in gross profit

D.  decrease in net profit

 

33. Uncredited cheques refers to cheques not yet credited

A. in the cash book

B.by the bank

C. by the drawer

D. in the ledger

 

34. Interim dividend paid in a year is

A.  debited to the Income Surplus Account/Profit and Loss Appropriation Account

B.  credited to the Income Surplus Account/ Profit and Loss Appropriation Account

C. debited to the Profit and Loss Account

D. credited to the Profit and Loss Account

 

35.A feature of government accounting is that the

A. fixed assets are depreciated

B. Objective is to report  profit made by the government

C. accounts are prepared on accrual basis

D. accounts are prepared on cash basis

 

use the following information to answer 36 and 37

 

$

Cost of raw materials available

32,000

Manufacturing wages

10,000

Factory expenses

5,000

Royalty

3,000

Factory rent

2,000

Depreciation of plants and machinery

5,000

Closing stock of raw materials

3,000

 

36.  The prime cost is

A.  $57,000

B.  $45,000

C.  $42,000

D. $39,000

 

37. Factory overhead cost is

A.  $25,000

B.  $15,000

C.  $12,000

D.  $7,000

 

38. Capital and drawing accounts are kept  in the

A.  general ledger

B. purchases ledger

C. sales ledger

D.  private ledger

 

39. Set - off is carried  in the control account when

A.  a business organization is both a customer and a supplier

B. customers refuse to pay their debts

C. the debtors settle their account

D. customers' cheques are dishonoured

 

40.  Debtors balance (01/01/16) - Le 2,518; Cash received - Le 10,000; Discount allowed - Le 280; Interest charged to debtors  - Le 63; Debtors balance (30/06/16) - Le 1,450. The credit sales is

A. Le 11,730

B. Le 9, 149

C. Le 2,581

D. Le 2,518

 

41.  An example of nominal account is

A. Kofi and Ali Account

B. Plant and Machinery Account

C. Profit and Loss Account

D. Cash and Bank Account

 

42.  The concept that recognizes revenue at the time of sale and not only when cash is received is

A. cost concept

B. realization concept

C. accrual concept

D. duality concept

 

43. The document  used to correct an undercharge on an invoice is

A. credit note

B. debit note

C. receipt

D. voucher

 

Use the following information to answer question 45 to 47

 

 

Dept A

D

Dept B

D

Sales

16,000

24,000

Purchases

9,000

6,000

Opening stock

600

500

Closing stock

900

600

Discount allowed

800

1,200

Carriage inwards (proportion to sales) 1,600

 

 

 

45.  Carriage inwards for Dept. B is

A. D1,600

B. D960

C. D800

D. D640

 

46.  Net profit  for Dept. A is

A. D 6,340

B. D 5,860

C. D 4, 960

D. D 4, 900

 

47. Net profit  for Dept B is

A. D 17,460

B. D 16,660

C. D 16, 260

D. D15, 940

 

Use the following information to answer question 48 and 49

A firm brought a lathe machine for Le45,600 on 1st January 2015. The life span was estimated to be 20 years while scrap at the end of the period was valued at Le1,660. It was to be depreciated by fixed installment method

 

48. The depreciation per annum is

A. Le 2,360

B. Le 2, 280

C.  Le 2,220

D. Le 1,660

 

49. The net book value of the machine as at 31st December, 2017 was

A. Le 44,000

B. Le 41,200

C. Le 39,000

D. Le 38,760

 

50.  Subscription  owing $6,000(31/12/2014); Subscription advance $4000 (31/12/2014); Cash received  as  subscription during the year was$80,000. The subscription for the year 2014 was

A.  $90,000

B. $82,000

C. $78,000

D. $70,000

WAEC SUBJECTS: 
Year of WASSCE EXAM: