WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2011 (SSCE WAEC MAY/JUNE 2011 FINANCIAL ACCOUNTING)

WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2011 (SSCE WAEC MAY/JUNE 2011 FINANCIAL ACCOUNTING)

1. The objectively of accounting information is enable users to

A. prepare the financial statements

B. value stock

C. make decisions

D. prepare budgets

 

2. Trade discounts are given for

A. bulk purchases

B. prompt payment

C. quick delivery

D. cash payment

 

3. When closing stock is overstated, it would reduce,

A. cost of sales and increase gross profit

B. gross profit and increase cost of sales

C. purchases and increases sales

D. sales and increase purchases

 

4. Which of the following is not a source document?

A. journal paper

B. sales invoice

C. debit note

D. credit note

 

5. A fixed assets fully written-down by a trader is now considered to be worth ₦5,000. The double entry required to reflect this is debit

A. asset account credit purchase account

B. asset account credit capital account

C. capital account credit asset account

D. capital account credit profit and loss account

 

6. Which of the following is a book of ordinary entry?

A. ledger

B. balance sheet

C. bank statement

D. sales journal

 

7. A balance sheet shows only

A. fixed assets and current assets

B. assets and long term liabilities

C. assets and liabilities

D. assets and capital

 

8. The process of entering transaction from one book to another is

A. reading

B. posting

C. numbering

D. listing

 

Using the following information question 9 and 10

 

1/1/10

31/12/10

 

GH¢

GH¢

Stocks

1,400

1,900

Creditor

2,000

2,700

Cash paid to trade creditor GH¢ 8,000

Mark – up on cost of sales 20%

 

9.  The total purchases is

A. GH¢ 8,700

B.  GH¢7,300

C. GH¢ 6,600

D.  GH¢ 5,300

 

10. The cost of sales is

A. GH¢ 8,200

B. GH¢ 7,300

C. GH¢ 5,500

D. GH¢ 4,800

 

11. Which of the following is a trading account item?

A. discount allowed

B. discount received

C. carriage outwards

D. carriage inwards

 

12. The addition of prime cost and factory overhead is

A. total factory overheads

B. market value of goods produced

C. cost of goods produced

D. work-in-progress

 

13. Capital receipt is collected

A. on sales of motor vehicle

B. on sales of stock in trade

C. from trade debtors

D. from trading activities

 

14. Which of the following is an example of factory overheads?

A. salary of marketing officer

B. salary of production officer

C. salary of accounting officer

D. wages of machine operator

 

15. Osa started business with Le 40,000 cash. The accounting entry is debit

A. cash account; credit capital account

B. capital account; credit cash account

C. purchases account; credit cash account

D. expenses account; credit capital account

 

16. Branch stock account is used to determine the

A. net value of goods sent to branch

B. gross profit of the branch

C. branch credit sales

D. branch net profit or loss

 

17. The name given to a budget in public service accounting is

A. vote

B. subvention

C. general order

D. estimate

 

Use the following information to answer question 18 to 20

 

16. The amount of working capital is

A. N 11,000

B. N 7,000

C. N 4,000

D. N 3,000

 

19.  Working capital ratio is

A. 5 : 4

B. 5 : 3

C. 4 : 5

D. 1 : 1

 

20.  Acid test ratio is

A. 5: 4

B. 5: 3

C. 4 : 5

D. 1 : 1

 

21. Which of the following is not prepared by a partnership?

A. trading account

B. profit and loss account

C. income and expenditure account

D. profit and loss appropriation account

 

22. A partner who only makes capital contribution but does not take part in the management of the partnership business is a/an

A. ordinary partner

B. limited partner

C. dormant partner

D. nominal partner

 

23. Which of the following is a component of prime cost?

A. depreciation

B. royalty

C. factory rent

D. factory electricity

 

24. The concept which establishes the rule for the periodic recognition of revenue as soon as it is capable of objective measurement is

A. going concern

B. entity

C. consistency

D. realization

 

25. Rent accrued in 2009 was D140, in 2010, D900 was paid while D160 was outstanding. Rent for 2010 was

A. D1,200

B. D1,060

C. D920

D. D880

 

26. Which of the following is not an input device?

A. card reader

B. paper top reader

C. alpha-numeric keyboard

D. line partnership

 

27. The equivalent of income and expenditure account in a trading concern is

A. trading account

B. profit and loss account

C. appropriation account

D. balance sheet

 

28. The term used to denote the capital of a not-for-profit making organization is

A. annuity fund

B. nominal capital

C. circulating capital

D. accumulated fund

 

29. The portion of authorized capital that has been allotted to subscribers

A. called up capital

B. paid up capital

C. issued capital

D. nominal capital

 

30. Partners whose liabilities are restricted to their financial contribution to the partnership in the event of winding up are

A. ordinary partners

B. limited partners

C. dormant partners

D. sleeping partners

 

31. If creditors at 1\1\10 were Le 3,000; creditors at 31/12/10 Le 5,500 and payments to creditors Le 29,000. The purchases figure for 2010 is

A. Le 34,500

B. Le 32,000

C. Le 31,500

D. Le 26,500

 

32. Which of the following is not found in the personal ledger?

A. debtors account

B. creditors account

C. capital account

D. nominal account

 

33. The sales ledger control account is also referred to as

A. bought ledger control account

B. purchases account

C. total debtors account

D. total creditor account

 

Use the following information to answer 34 and 35

 

 

34. Capital expenditure for the year was

A. Le 545,000

B. Le 490,000

C. Le 450,000

D. Le 300,000

 

35. The amount of recurrent expenditure was

A. Le 245,000

B. Le 175,000

C. Le 135,000

D. Le 80,000

 

36. An increases in the provision for doubtful debts results is a\an

A. increase in the gross profit

B. decrease in the gross profit

C. decrease in the net profit

D. increase in the net profit

 

37. Which of the following errors affects the agreement of a Trial balance?

A. wrong addition in the sales account

B. crediting a purchase to the sales account

C. failure to enter sales in the books

D. posting the purchase of a van to the debit side of the purhases account

 

38. The excess of value of assets over the purchase consideration on acquisition of a business is credited to

A. share capital account

B. goodwill account

C. capital reserved account

D. general reverse account

 

 

39. Share of ₦3 nominal value were issued at a price ₦4. The difference of ₦1 is a

A. commission

B. discount

C. premium

D. bonus

 

40. Which of the following is not the purpose of a control account?

A. check on errors of addition

B. locate errors

C. locate missing figures

D. monitor the cash book

 

41. Which of the following is not part of the central processing unit of a computer?

A. arithmetical and logical unit

B. memory unit

C. input unit

D. control unit

 

42. The double entry to record the proceeds on disposal of assets in debit

A. bank account; credit asset disposal account

B. asset disposal account; credit bank account

C. provision for depreciation account; credit asset disposal account

D. asset disposal account; credit provision for depreciation account

 

43. An underwriter for a company's share is paid

A. interest

B. commission

C. dividend

D. salary

 

44.  Which of the following is a form of memorandum of association

A. names of directors

B. appointment of directors

C. object of the business

D. payment of dividend

 

45. Administrative, selling and distribution expenses in a manufacturing firm are recorded in

A. trading account

B. manufacturing account

C. profit and loss account

D. balance sheet

 

46. Which of the following is not a revenue to a local government?

A. fines

B. licenses

C. personal ncome tax

D. tenement rates

 

Use the following information to answer 47 and 48

47. The capital is

A. D1,440

B. D6,580

C. D5,380

D. D1,000

48. The liability is

A. D7,580

B. D6,580

C. D5,380

D. D1,000

 

49. Which of the following is not an item in the profit and loss account?

A. drawings

B. interest

C. salaries

D. bad debts

 

50. A loss made on the disposal of a fixed assets is debited to

A. sales account

B. purchases account

C. profit and loss account

D. capital account

 

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