WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2018 (SSCE WAEC MAY/JUNE 2018 FINANCIAL ACCOUNTING)
1. Investors in a business are mainly in the firm's
A. liquidity
B. debt
C. management
D. profitability
2. One of the characteristics of useful accounting information is
A. Profitability
B. comparability
C. efficiency
D. liquidity
3. Which of the following items is found is found on the debit side of a trial balance?
A. Provision for doubtful debts
B. Discount allowed
C. Discount received
D. Returns outwards
4. Which of the following transaction is a revenue expenditure?
A. Purchase of a plant
B. Purchase of a new engine
C. Construction of office wall
D. Purchase of fuel for vehicle
5. Credit note received are source document for
A. Return inward Journal
B. Return Outward Journal
C. Purchase Journal
D. Sales Journal
6. A document forwarded to a supplier showing amount due for unsatisfactory goods is
A. Debit Note
B, Credit Note
C. Invoice
D. Waybill
7. A claim of a proprietor of a business entity on its assets is
A. liabilities
B. capital
C. drawings
D. funds
8. The appointment of cost of a fixed asset to the profit and loss account is termed as
A. expense
B. depreciation
C. loss
D. appreciation
9. Entries in the purchases journal are transferred to the
A. receivable ledger
B. payable ledger
C. general ledger
D. private ledger
10. A reduction in price to encourage prompt payment is
A. trade discount
B. quantity discount
C. cash discount
D. seasonal discount
Use the following information to answer question 11 and 12
Tei Ltd offered 1,560 units of a magazine at N60.00each Trade discount is 10% and cash discount is 10% within 30 days and 5% within 60 days
11.The amount payable if payment is made on the 40th day is
A. N88, 920
B.N84, 240
C. N80,028
D. N72,025
12. The cash discount allowed on the 50th day is
A.N9,360
B. N8,424
C. N4,680
D. N4,212
13. An amount of Le 2000 received from a customer Kofi has been credited to another customer, kofigo's account . This is an error of
A. principle
B. commission
C. original entry
D. fixed capital
14. A debit balance of GH¢420 on the purchase Ledger Control Account means that as at that date
A. trade creditors has been overpaid by GH¢420
B. trade creditors are owed GH¢420
C. goods returned on trade creditors amounted to GH¢420
D. total supplies from trade creditors amounted GH¢420
15. Sales and Purchases
Use the following information to answer question 23 and 24
|
|
Le |
|
Sales |
120,000 |
|
Purchases |
100,000 |
|
Opening stock |
10,000 |
|
Closing stocks |
20,000 |
17. Which of the following activities will increase profit
A. Depreciation charges
B. Reduction in provision for doubtful debts
C. Undervaled closing stock
D. Returns inwards
18. The concepts that implies that a business will operate for an indefinitely long period of time is
A. accrual concept
B. going concern concept
C. business entity concept
D. periodicity concept
19. The consistency concepts aim at
A. ensuring that all expense are matched against revenue
B. reducing cost
C. comparability of accounting records
D. suppressing profits to be declared
20. The concepts which state that revenue is recongised when goods are sold is
A. Realisation concept
B. Matching concept
C. Periodicity concept
D. Going concern concept
21. Cost of goods sold is calculate as
A. opening stock + sales - closing stock
B. Opening stock + sales - closing stock
C. opening stock + purchase + closing stock
D. opening stock + sales + closing stock
22. The wages of an office cleaner is classified as
A. direct labour cost
B. direct expenses
C. factory overheads
D. administrative overheads
23. The cost of goods solds is
A. Le 120,000
B. Le 110,000
C. Le 90,000
D. Le 30,000
24. The gross profit or loss is
A. Le 30,0000 gross profit
B. Le 20,000 gross profit
C. Le 10,000 gross loss
D. Le 30,000 gross loss
25. The amount set aside out of profit to strengthen the financial position of the business
A. provision
B. reserve
C. depreciation
D. Surplus
26. A fall in the value of a fixed asset due to technological changes is described as
A. superfluity
B. wear and tear
C. obseolescence
D. surplus
27. A credit entry is made in the plant and Machinery Account for the
A. purchase of an additional plant and machinery
B. Sales of plant and machinery
C. maintenance of plant and machinery
D. appreciation of the plant and machinery
28. In a manufacturing account royalties paid is
A. debited to the trading account
B. credited to the profit and loss account
C. credited to the manufacturing account
D. debited to the manufacturing account
29. One of the component of factory overhead is
A. raw material consumed
B. manufacturing wages
C. carriage inwards
D. depreciation of plant and machinery
Use the following information to answer 30 and 31
|
|
GH¢ |
|
Direct material used |
64,000 |
|
Direct labour |
30,000 |
|
Production overheads |
22,000 |
|
Work in progress at beginning |
9,000 |
|
Work in progress at close |
14,000 |
30. Total cost of production is
A. GH¢94,000
B. GH¢106,000
C. GH¢111,000
D. GH¢116,000
31. Prime cost of production is
A. GH¢64,000
B. GH¢94,000
C. GH¢ 111,000
D.GH¢116,000
32.The balance on the sales ledger control account at the end of the accounting year represents total
A. trade debtors at the end of the year
B. cash sales of the year
C. credit sales for the year
D. amount transferred from the sales journal
Use the following information to answer 33 and 34
|
|
01/01/2016 D |
31/12/2016 D |
|
Trade debtors |
80,000 |
100,000 |
|
Trade creditors |
30,000 |
40,000 |
|
Stock |
70,000 |
90,000 |
|
|
|
|
Cheques received from trade debtors in 2016: D350,000
Payment made to trade creditors in 2016: D220,000
33. Credit sales for 2016 is
A. D530,000
B. D 230,000
C. D220,000
D. D210,000
35. The excess of assets over liabilities of a not-for-profit making organization is
A. Surplus
B. deficit
C. working capital
D. accumulated fund
Use the following information to answer question 36 and 37
Receipts and Payments : 31st December 2016
|
|
N |
|
N |
|
Cash at bank |
460 |
New Equipment |
200 |
|
Subscription |
520 |
Cleaners' wages |
540 |
|
Donations |
500 |
Stationery |
140 |
|
Sales of tickets |
490 |
Repairs |
110 |
|
Entrance fees |
670 |
|
|
36. The surplus for the year is
A. N1,970
B. N1,890
C. N1,690
D. N1,390
37. The total income received for the year is
A. N2,640
B. N2,180
C. N1,890
D. N1,690
38. The parties who are paid last in the event of winding-up are
A. preference shareholders
B. debenture holders
C. ordinary shareholders
D. trade creditors
39. An event that will not require a change in the profit- sharing ratio of partners in a firm is when
A. a partner dies
B. a partner retires
C. a new partner is admitted
D. partners assets value appreciates
Use the following information to answer 40 and 41
|
|
N |
|
Net profit |
17, 460 |
|
CapitalAccount: Taiwo Obi |
50,000 40,000 |
|
Drawings Account: Taiwo Obi |
12,000 10,000 |
|
Salary - Obi |
1,500 |
|
Interest on capital |
5% |
|
Interest on drawings |
4% |
|
Profit sharing ratio is 3 : 2 for Taiwo and Obi respectively |
|
40. Taiwo's share of profit is
A. N8,960
B. N7,404
C. N4,936
D. N3,296
41. Obi's share of profit
A. N8,960
B. N7,404
C. N4,936
D. N3,296
42. The accounting entries for cash realized from the sale of assets on dissolution of partnership is debit
A. Cash Account; credit Partner Capital Account.
B. Asset Account; credit partners Capital Account
C. Cash Account; Credit Realisation Account
D. Realisation Account; credit Cash Account.
43. The process of distributing shares to successful applicants is
A. allocation
B. apportionment
C. allotment
D. application
44. The process of distribution shares to successful applicant is
A. allocation
B. apportionment
C. allotment
D. application
45.The basis of apportionment of insurance on building in departmental accounts is
A. floor space occupied by the department
B. Purchase cost of the building
C. value of the building
D. number of office in the building
46. Under the cost method in Branch Accounts, branch gross profit is disclosed in the
A. Goods sent to Branch Account
B. Branch Debtors Account
C. Branch stock Account
D. Branch stock Adjustment Account
Use the following information to answer question 47 and 48
|
|
Le |
|
Ordinary share capital |
70,000 |
|
Retain earning |
31,142 |
|
Motor vehicle at cost |
21,136 |
|
Accumulated depreciation-motor vehicle |
7,109 |
|
Furniture and Fittings at cost |
1,334 |
|
Furniture of fittings |
1,007 |
|
Stock |
32,200 |
|
Debtors |
49,380 |
|
Banks |
15,953 |
|
Creditors |
11,329 |
47. Equity holder fund is
A. Le 112,471
B. Le 111,834
C. Le 101,142
D. Le 70,000
48. Net book value of fixed assets is
A. Le 22,480
B. Le 21,136
C. Le 14,354
D. Le 14,027
49. The authority to incur expenditure in the public sector is
A. warrant
B. vote
C. budget
D. voucher
50. Below-the-line item in public sector accounting means such an item is
A. not budgeting for in the current fiscal year
B. budgeted for in the current fiscal year
C. to be carried forward to the next fiscal year
D. less than what is budgeted for