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
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|
01/01/17
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31/12/17
|
|
Trade creditors |
630,000 |
780,000 |
|
Stock |
540,000 |
480,000 |
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Cash paid to trade creditors in 2017 was |
||
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
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April 11: Sold goods for cash N50,000 |
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April 20: Bought goods for cash N30,000 |
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April 26: Bought postage stamp N5,000 |
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April 28: Cash sales N49,000 |
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April 30: Cash purchases N11,000 |
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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
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D |
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Opening capital |
10,800 |
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Drawings |
2,500 |
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Trade creditors |
2,500 |
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Trade debtors |
2,880 |
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Cash in hand |
1,000 |
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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.
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Ajem GH¢ |
Ogah GH¢ |
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Capital Account |
60,000 |
65,000 |
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Current Account |
40,000 |
65,000 |
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Drawing |
20,000 |
50,000 |
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Salary |
10,000 |
30,000 |
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Net profit was GH¢ 100,000 |
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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
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$ |
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Cost of raw materials available |
32,000 |
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Manufacturing wages |
10,000 |
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Factory expenses |
5,000 |
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Royalty |
3,000 |
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Factory rent |
2,000 |
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Depreciation of plants and machinery |
5,000 |
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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
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Dept A D |
Dept B D |
|
Sales |
16,000 |
24,000 |
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Purchases |
9,000 |
6,000 |
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Opening stock |
600 |
500 |
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Closing stock |
900 |
600 |
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Discount allowed |
800 |
1,200 |
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Carriage inwards (proportion to sales) 1,600 |
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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