Study and practice Accounting past questions with answers and detailed explanations. Then test your knowledge using our interactive CBT practice platform and prepare confidently for your upcoming examinations.
The person who is responsible for the formation of a company is called the
Apromoter
Bdividend
Cshareholder
Ddirector
Esubscriber
View Explanation & Discuss
Question 12
waec1997
The amount for which a business is sold is known as
Agoodwill
Bcapital reserve
Cpurchase consideration
Dpremium
Eequity
View Explanation & Discuss
Question 13
waec1997
An expense becomes an accrual because it
Ais due for payment
Bis a Profit and Loss Account item
Cis a Trading Account item
Dis to be paid within the next one year
Emust appear in the balance sheet
View Explanation & Discuss
Question 14
waec1997
Use the following information to answer this question
Kudi Local Government Council incurred the following expenditure in 1995:
N
Payment of salaries 140,000
Purchase of drugs for dispensaries 80,000
Purchase of books for Library 30,000
Sinking of wells 70,000
Extension of Council offices 160,000
The amount of revenue expenditure for 1995 was
AN26,000
BN230,00
CN220,000
DN160,000
E140,000
View Explanation & Discuss
Question 15
waec1997
Use the following information to answer the given question
Kudi Local Government Council incurred the following expenditure in 1995:
\(\begin{array}{c|c} & N \\ \hline \text{Payment of salaries} & 140,000 \\ \text{Purchase of drugs for dispensaries} & 80,000 \\ \text{Purchase of books for Library} & 30,000 \\ \text{Sinking of wells} & 70,000 \\ \text{Extension of Council offices} & 160,000 \end{array}\)
The amount of capital expenditure for 1995 was
AN260,000
BN230,000
CN220,000
DN160,00
EN140,000
View Explanation & Discuss
Question 16
waec1997
A cash discount is a
ATrading Account item
BProfit and Loss Account item
CAppropriation Account item
DReceipts and Payments Account item
EBalance Sheet item.
View Explanation & Discuss
Question 17
waec1997
A provision is
Aan expense of business to be paid for in cash
Ban amount of loss from trading activities
Ca loss in value of all business assets
Dan expense the amount of which is not certain
Ean amount set out of profit for other uses
View Explanation & Discuss
Question 18
waec1997
Which of the following is not a personal account?
ABolaji Account
BDrawings Account
CP.Z. Plc Account
DCash Account
EAcada Club Account?
View Explanation & Discuss
Question 19
waec1997
An item is fictitious because it
Adoes not exist
Bis too costly
Cis worthless
Dcannot be sold for cash
Eis bought on credit
View Explanation & Discuss
Question 20
waec1997
A real account is the account of
Aexpenses or losses
Bgains or income
Cphysical tangible items
Dfictitious items
Ecurrent liabilities
View Explanation & Discuss
Question 21
waec1997
A ledger is a
Abook of accounts
Bsummary of entries
Cbook of original entry
Ddouble entry posting
Erecord of credit transactions
View Explanation & Discuss
Question 22
waec1997
Use the following information to answer this question
A company charges out goods to a branch at cost plus 25 percent. It invoiced N12,00 worth of goods
The double entry required for the mark-up is debit Branch
ASales Account, credit Branch Adjustment Account
BAdjustment Accoutnt, credit Branch Stock Account
CStock Account, credit Branch Adjustment Account
DAdjustment Account, credit Branch Profit and Loss Account
EProfit and Lost Account, credit Branch Stock Account
View Explanation & Discuss
Question 23
waec1997
Use the following information to answer this question
A company charges out goods to a branch at cost plus 25 percent. It invoiced N12,00 worth of goods
The mark-up is
AN15,000
BN9,000
CN4,000
DN3,000
EN2,000
View Explanation & Discuss
Question 24
waec1997
Which of the following is not a source document for recording sales?
ADebit note
BCredit note
CReceipt
DSales journal
EInvoice
View Explanation & Discuss
Question 25
waec1997
A financial plan of action expressed in monetary terms is known as
Aimprest
Bconsolidated fund
Cwarrant
Dbudget
Edevelopment fund
View Explanation & Discuss
Question 26
waec1997
Where a business is purchased, the full amount of the purchase consideration is credited to
APurchase of Business Account
BCreditor's Account
CVendor's Account
DPurchaser's Account
EDebtor's Account
View Explanation & Discuss
Question 27
waec1997
Which of the following is an advantage of the impurest system?
Amaking hig profits in the business
BRewarding the imprest holder
CEasy prearation of the final accounts
DMeeting small items of expenditure
EEnabling the Trial Balance to agree
View Explanation & Discuss
Question 28
waec1997
In Manufacturing Account, prime cost plus factory overhead is known as
Aconversion cost
Bcost of raw materials consumed
Ctotal cost
Dproduction cost
Ecost of work in progress
View Explanation & Discuss
Question 29
waec1997
Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
The profit on sale was
AN8.00
BN7,000
CN6,000
DN5,000
EN1,000
View Explanation & Discuss
Question 30
waec1997
Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
