WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2000 (SSCE WAEC MAY/JUNE 2000 FINANCIAL ACCOUNTING)

1. The systematic recording of business transactions is

A. auditing

B. book-keeping

C. debiting

D. crediting

 

2. An allowance given to a customer by a supplier for prompt payment is

A. trade discount

B. discount received

C. cash discount

D. cash rebate

 

3. Which of the following is not contained in a journal? To record

A. small and repetitive cash disbursements

B. purchase and sale of fixed assets on credit

C. writing off bad debts

D. debtors and creditors

 

4. Which of the following is found in the private ledger?

A. rent account

B. sales account

C. drawings account

D. bank account

 

5. Which of the following is not one of the uses of a journal proper? To record

A. small and repetitive cash disbursements

B. purchases day book

C. writing off bad debts

D. debtors and creditors

 

6. A trial balance is a list of

A. current assets

B. current liabilities

C. debit and credit balances

D. debtors and creditors

 

7. Which of the following is an example of direct expense?

A. Royalties

B. carriage inwards

C. carriage outwards

D. manufacturing wages

 

Use the information to answer questions 8 to 10

 

CASH BOOK

 

 

8. Unpresented cheque(s) totalled

A. N9,120

B. N7,090

C. N1,400

D. N630

 

9. Adjusted Cash Book is

A. N3,800 O/D

B. N3,310 O/D

C. N3,030 O/D

D. N2,540 O/D

 

10. Uncredited cheques totalled

A. N3,500

B. N2,540

C. N1,060

D. N630

 

11. A debit balance of N1,000 in cash account means that

A. cash in hand is N1,000

B. cash has been overspent by N1,000

C. total cash paid out is N1,000

D. total cash received was less by N1,000

 

12. The maximum level of cash held by by a cashier under an imprest system is a/an

A. vote

B. float

C. reimburstment

D. advance

 

13. The total of the sales journal is entered on the

A. debit side of sales account

B. debit side of cash account

C. credit side of sales account

D. credit side of cash account

 

14. Gross profit is calculated in the

A. trading account

B. profit and loss account

C. appropriation account

D. partners current account

 

15. An example of fixed asset is

A. creditors

B. goodwill

C. accruals

D. furniture

 

Use the following information to answer questions 16 to 19

 

 

Interest on drawings is 5%, interest on capital is 10%. Profit and losses are shared equally. Net profit for the year is N30,000.

 

16. The amount of distributable profit is

A. N39,500

B. N30,500

C. N30,000

D. N20,500

17. Ade's share of profit is

A. N19,750

B. N15,250

C. N15,000

D. N10,250

 

18. The total amount credit to the Profit and Loss Appropriation Account is

A. N40,500

B. N30,500

C. N30,000

D. N25,000

 

19. Bola's current account balance is

A. N18,150 Cr

B. N16,150 Cr

C. N10,150 Cr

D. N6,150 Cr

 

20. Capital expenditure is the

A. cost of running a business

B. money spent on buying goods for resale

C. money spent on acquire fixed assets

D. extra capital paid in by the proprietor

 

 

21. Depreciation of assets is provided for provided for in consideration of

A. disposal

B. loss by fire

C. loss in transit

D. wear and tear

 

22. Which of the following is a factory overhead?

A. Depreciation of plant and machinery

B. Royalties

C. raw materials consumed

D. carriage outwards

 

23. Which of the following is used to derive missing figures in a system of incomplete records?

A. control account

B. bank account

C. profit and loss account

D. bank statement

 

24. Which of the following is not contained in sales ledger control account?

A. returns inwards

B. returns outwards

C. receipts from debtors

D. dishonored cheques

 

25. Which of the following is not credited to debtors control account?

A. provision for bad debt

B. bas debt

C. discount allowed

D. bills receivable

 

26. Where a firm has not kept proper books of account, an increase in closing capital over opening capital represents

A. profit

B. loss

C. prepayments

D. cash balance

Use the following information to answer the questions 27 to 29

RECEIPTS AND PAYMENTS ACCOUNT:

 

 

 

27. Accumulated fund as at 1st January 2004 is

A. D54,100

B. D52,800

C. D52,600

D. D51,300

 

28. Rates charged to the income and expenditure Account for the year 2004 is

A. D2,200

B. D1,600

C. D1,500

D. D1,400

 

29. Subscriptions relating to the year 2004 is

A. D19,600

B. D17,300

C. D16,500

D. D15,00

 

30. Which of the following is not an accounting concept?

A. periodicity

B. accuracy

C. consistency

D. objectively

 

 

31. "Transactions are governed by legal principles, but are nevertheless accounted for and presented in accordance with the substance and financial reality". This is in compliance with the principle of

A. substance over form

B. prudence

C. objectively

D. materiality

 

32. Which of the following statements is not correct?

A. profits increase capital

B. losses reduce capital

C. drawings reduce capital

D. drawings increase capital

 

33. Direct material + direct expenses is

A. overhead

B. prime cost

C. total cost

D. conversion cost

 

34. Books of account are opening by means of a

A. purchases journal

B. principal journal

C. sales journal

D. returns inward journal

 

35. When both debit and credit entries of a transaction are shown in the cash book, it is described as

A. contra entry

B. reversal entry

C. double entry

D. single entry

 

36. The correct order of liquidity is

A. stock, debtors, prepayments and cash

B. cash, payments, debtors and stock

C. stock, cash, debtors and prepayments

D. debtors, stock, cash and prepayments

 

37. Which of the following ratios measure the ability of a firm to meet short-term obligations?

A. net profit margin

B. quick asset ratio

C. turnover

D. creditor’s ratio

 

38. Which of the following is not an appropriation of profit

A. Dividends

B. Reserves

C. Provisions

D. Bonus Issue

 

39. Which of the following is a capital reserve?

A. profit and loss account balance

B. share premium

C. Gross profit

D. share discount

 

40. When shares are sold at less than the nominal value, it means they are issued at

A. a premium

B. a loss

C. a discount

D. par

 

41. Where goods are invoiced by a firm its branch at cost-plus, the branch stock adjustment accounts is used to determine

A. cost price

B. branch profit

C. selling price

D. branch expenses

 

42. Which of the following is apportioned in proportion of the purchases of each department?

A. Discounts received

B. selling commission

C. bad debts

D. carriage outwards

 

Using the following information to answer the questions 43 to 46

 

43. The total basic salary for the year was

A. N3,173,032

B. N3,048,000

C. N1,084,730

D. N8555,600

 

44. The total transport allowance was

A. N384,000

B. N379,200

C. N211,200

D. N168,000

 

45. The total housing allowance was

A. N1,608,000

B. N840,000

C. N768,000

D. N168,000

46. The responsibility allowance of grade leaves 14 and 15 was

A. N21,000

B. N90,000

C. N60,000

D. N30,000

 

46. The part of the C.P.U used for the processing of data is

A. Memory unit

B. arithmetic and logic unit

C. output unit

D. input unit

 

48. Resources consumed but to be paid for within the next accounting period are classified in the balance sheet as

A. current liabilities

B. current assets

C. long-term liabilities

D. capital

 

49. Where a proprietor withdraws stock for personal consumption, the accounting entries to record the transaction are

A. debit drawings account, credit purchases account

B. debit purchases account, credit sales account

C. debit sales avvount, credit drawings account

D. debit drawings account, credit sales account

 

50. Where there is a loss on disposal of a fixed asset, it means

A. depreciation has been underestimated

B. depreciation has been overestimated

C. scrap value has not been estimated

D. depreciation method used is inappropriate