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THEORY QUESTIONS

WAEC SYLLABUS

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 folio column is a cash book, it shows a?

A. Double entry

B. Cash entry

C. Contra entry

D. 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. The primary concern of shareholder 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 current 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 questions 6 and 7

ANSWERS

6. Purchases for 2017 was

A. ₦3,480,000

B. ₦2,850,000

C. ₦2,700,000

D. ₦2,550,000

7. The cost of goods sold was?

A. ₦3,330,000

B. ₦2.910.000

C. ₦2.760.000

D. ₦2.610.000

8. In public sector accounting salaries of employees is classified as?

A. Capital expenditure

B. Capital receipt

C. Recurrent expenditure

D. Recurrent receipt

9. Kadiri paid in debt to Suleman by Cheque. The accounting entries in Kadiri”s book are debit?

A. Bank account: Credit Suleman’s Account

B. Bank Account: Credit Account Debtors’ Account

C. Suleman’s Account: Credit Bank Account

D. Suleman’s Account: Credit Cash Account

10. The concept which seeks to prevent profits from being overstated is?

A. Materiality

B. Consistency

C. Prudence

D. Periodicity

ANSWERS

Use the following information to answer question 11 and 12

April 11: Sold goods for cash ₦50,000

April 20: Bought goods for cash ₦30,000

April 26: Cash sales postage stamp ₦5,000

April 28: Cash sale ₦49,000

April 29: Cash purchase ₦11,000

April 30: Paid salaries ₦18,000

11. Total cash receipts for the period is?

A. ₦99,000

B. ₦64,000

C. ₦50,000

D. ₦35,000

12. The cash balance at the end of the period is?

A. ₦99,000

B. ₦64,000

C. ₦35,000

D. ₦34,000

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. When the business makes a huge profit

B. The business has a adequate bank profit

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. 2/2

C. 1/3

D. 2/9

ANSWERS

21. When closing stock is undervalued, the cost of goods sold would be?

A. Overstated and the gross profit understated

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 partner’s current account

D. Debit side of partner’s current account.

23. When bank charges are deducted from Customer’s account, the balance in the bank statement would be

A. More than the cash book balances

B. Less than the cash book balance

C. Equal to the cash book balance

D. Added to the cash book balance

24. Companies issues shares to the public in orders to?

A. Reduce the number of director

B. Reduce the number of shareholders

C. Raise capital

D. Generate profit

25. Sulah took two materials worth GH¢500 from his business for his children’s use. This would be treated as

A. Loam

B. Stock

C. Drawing

D. Sales

Use the following information to answer question 26 and 28

ANSWERS

26. Ogah’s share of profit was?

A. GH¢51,150

B. GH¢50,250

C. GH¢34,100

D. GH¢33,500

27. Ajem’ current account balance was?

A. GH¢65,000

B. GH¢60,000

C. GH¢42,000

D. GH¢40,000

28. Interest on drawings 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. When there is provision for depreciation, fixed assets is a shown in the balance sheet at? i. Cost less depreciation for the period only ii Cost less total depreciation to data iii Written down value

A. I only

B. II only

C. I and II only

D. I and III only

ANSWERS

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. Unaccredited cheques refer to chaques not yet credit.

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. Debit 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 question 36 and 37

ANSWERS

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 drawings account are kept in the?

A. General ledger

B. Purchase ledger

C. Sales ledger

D. Private ledger

39. Set-off is carried out in the control account when?

A. A business organization in both a customer and a supplier

B. Customers refuse to pay their debits

C. The debtor settles their account

D. Customer’s cheques are dishonored.

40. Debtors balance (01/01/16) – Le2,518: Cash received – Le 10,000: Discount allowed = Le 280: Interest charged to debtor = Le 63: Debtor balance (30/06/17)- Le1,450. The credit sales are?

A. Le11,730

B. Le9,149

C. Le2,581

D. Le2,518

ANSWERS

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 recognized revenues at the time of sales and not only when cash is received is?

A. Cost concept

B. Realization Concept

C. Accrual concept

D. Duality concept

43. The accounting concept which stipulates that income and expenses should be matched to determined profit or loss is?

A. Cost concept

B. Accrual Concept

C. Objectivity concept

D. Realization concept

44. The document use to correct an undercharges in an invoice is?

A. Credit note

B. Debit note

C. Receipt

D. Voucher

Use the following information to answer question 45 to 47

ANSWERS

46. Net profit for Dept. B 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. D 15,940

Use the following information to answer question 48 and 49

A firm bought lathe machine for Le 45,600 on 1st January, 2015. The life span was estimated to be 20 years while scrap at the end of the period was valued at Le 1,600. 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 2,200

D. Le 1,600

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 owning $6,000 (31/12/2017): Subscription in advance $4,000 (31/12/2017): Cash received as subscription in during the year was $80,000, The subscription for the year 2014was?

A. $90,000

B. $82,000

C. $8,000

D. $70,000