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.
Cdebit profit and loss appropriation account, credit Goodwill account
Ddebit Trading account, credit Goodwill account
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Question 7
waec2007
The maximum amount which a company is allowed to raise through the sale of shares is
Aauthorized capital
Bpaid-up capital
Cissued capital
Dworking capital
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Question 8
waec2007
Use the following information to answer the given question
\(\begin{array}{c|c}year & profit \\ \hline 2003 & Le 40,000\\ 2004 & Le 48,000\\ 2005 & Le 62,000\end{array}\)
The value of goodwill calculated at 3 years purchase of annual profit is
ALe 450,000
BLe 150,000
CLe 50,000
DLe 48,000
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Question 9
waec2007
The correct sequence in data processing is
Ainput \(\to\) process \(\to\) output
Binput \(\to\) output \(\to\) process
Cprocess \(\to\) input \(\to\) output
Dprocess \(\to\) output \(\to\) input
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Question 10
waec2007
Which of the following is not a data processing method?
Amanual
Bmechanical
Celectronic
Dformatting
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Question 11
waec2007
In the absence of partnership agreement, a loan by a partner attracts interest at
A20%
B15%
C10%
D5%
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Question 12
waec2007
Which of the following is not used for determining working capital?
Acash
Bdebtors
Cmotor vehicles
Doverdraft
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Question 13
waec2007
Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 \\ Debtor & 10,000\\ Cash & 10,000\\ Creditors & 20,000 \end{array}\)
Quick ratio is
A4 : 1
B3 : 1
C2 : 1
D1 : 1
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Question 14
waec2007
Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 \\ Debtor & 10,000\\ Cash & 10,000\\ Creditors & 20,000 \end{array}\)
Current ratio is
A4 : 1
B3 : 1
C2 : 1
D1 : 1
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Question 15
waec2007
Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 \\ Debtor & 10,000\\ Cash & 10,000\\ Creditors & 20,000 \end{array}\)
Total assets is
A₦240,000
B₦220,000
C₦200,000
D₦180,000
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Question 16
waec2007
Which of the following bases of accounting does not make allowance for depreciation?
Acash basis
Baccrual basis
Cmatching basis
Dcommitment basis
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Question 17
waec2007
Which of the following formulae is used to calculate stock turnover rate?
A\(\frac{sales}{\text{average stock}}\)
B\(\frac{\text{cost of sales}}{\text{average stock}}\)
C\(\frac{\text{cost of sales}}{\text{opening stock}}\)
D\(\frac{\text{cost of production}}{\text{average stock}}\)
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Question 18
waec2007
In the absence of partnership agreement, profits and losses are shared
Ain the ratio of capitals
Bequally
Cin the ratio of drawings
Daccording to services rendered
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Question 19
waec2007
Which of the following is not an accounting convention?
Amaternity
Bconsistency
Cbusiness entity
Dperiodicity
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Question 20
waec2007
The accounting principle which states that for every debit entry, there is a corresponding credit entry is recognized by
