WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2017 (SSCE WAEC MAY/JUNE 2017 FINANCIAL ACCOUNTING)

WASSCE FINANCIAL ACCOUNTING MAY/JUNE  2017 (SSCE WAEC MAY/JUNE 2017 FINANCIAL ACCOUNTING)

1. Customers use the financial statement of a company to

A. assess the financial position of the business

B. regulate their activities

C. ascertain the taxable profit of the business

D. be sure of the extent of job security

 

2.  The claim on the assets of a business by outsides is

A. capital

B. liabilities

C. reserves

D. provisions

 

3. A document sent by a bank to its current account customers detailing their transaction over a given period is

A. bank reconciliation statement

B. bank statement

C. credit transfer

D. banker's advice

 

4. Which of the following items will not be entered  in the adjusted cash  book?

A.  Dishonoured cheques

B. Direct payment to bank

C. Uncredited cheques

D. Standing order payment

 

5.  If a petty cashier  has a cash  float of Le 39,000 and Le 37,500 is spent , he will be reimbursed  with

A. Le 40,500

B. Le 39,000

C. Le 37, 500

D. Le 1,500

 

6.  A suspense account is used in the

A.  prevention of errors

B. correction of errors

C. detection of errors

D. creation of errors

 

7. A credit purchase of GH¢200 from P. Osae was posted to the account of P. Osei. This is an error of

A. principle

B. commission

C. omission

D. original entry

 

8.  A credit purchase of GH¢100,000 was calculated at the rate of 20% instead of 10%. The error is corrected by debited

A. customer account with GH¢ 20,000; crediting discount allowed by GH¢10,000

B. discount allowed with GH¢10,000, crediting customer with GH¢20,000

C. customer account with GH¢ 10,000; crediting discount allowed by GH¢10,000

D. discount allowed with GH¢20,000, crediting cash with GH¢10,000

 

9.  The balance sheet equation shows  

A. current assets minus liabilities

B. the difference between fixed assets and current liabilities

C. assets and sources of financing them

D. sources of funding owner's equity

 

10. The effect on profit  when the closing stock is understated is

A. increase in profit

B. decrease in profit

C.  no change in profit

D. appropriation of profit

 

11. Which of the following describes a trial balance?

A. It shows all the entries in the books

B. it reveals the financial position of a business

C. it is a list of accounting balances on the books

D. it is a special account

 

12. The account of Jute Enterprises in the books of a supplier, will be a

A. nominal account in the general ledger

B. personal account in the sales ledger

C.  personal account in purchases ledgers

D.  real account in the general ledger

 

13.Which of the following accounts are found in the nominal ledger?

I. Advertising

II. Motor repairs

III. Additions to motor vehicle

A. I and II only

B. I and III only

C. II and III only

D. I, II and III

 

14.  Acounts payable is classified as a

A. prepayment

B. provision

C. current liability

D. long term liability  

15. Accounts concepts  that provides that accounting statements should not  be influenced by personal opinion is

A. materiality

B. periodicity

C.. objectivity

D. conservatism

 

16.  The prudence concept demands that

A.  care is exercised in recognition of profit

B. loss should not be anticipated

C.  profit should be reported

D. income should be recognized and disclosed

 

17. Carriage outward expenses of a business are treated in the

A. Balance sheet

B. Income Surplus Account

C. Profit and loss account

D. Income Surplus Account

 

18.  The cost of transporting purchased goods to the warehouse is charged to the

A. Profit and Loss Account

B. Appropriation Account

C. Trading Account

D. Income Surplus Account

 

19.An organisation purchased an equipment for GH¢112,000. It is expected to be used for 6 years then sold for GH¢16,000. What is the annual  amount of depreciation, if the straight line method is used?

A.  GH¢16,000

B.  GH¢15,000

C.  GH¢12,800

D.  GH¢12,000

 

Use the following information to answer 20 and 21

 

 

D

Sales ledger balance

01/06/12

9,000

 

30/06/12

30,000

Total for the month: Cash sales

 

10,000

Returns inwards

 

3,030

Cheque dishonoured

 

4,000

20. The credit sales for the month is

A.  D36,000

B. D31,000

C. D20,000

D.  D10,000

 

21. The total sales for the month  is

A.  D36,000

B. D31,000

C. D30,000

D.  D20,000

 

22. The excess of the market value of goods produced over the cost of  production is

A.  profit on manufacturing

B. net profit

C. goodwill

D.  gross profit

 

23.  Factory wages form part of

A. administration cost

B. selling and distribution cost

C. overhead cost

D. prime cost

 

24. Production cost of a manufacturing firm is made up of

A. Indirect material and prime cost

B. factory overheads and prime cost

C. direct materials and wages

D.  factory overheads and direct materials

 

25. In a manufacturing enterprise, depreciation of plant is treated in the

A. Trading Account

B. Profit and Loss Account

C. Manufacturing Account

D. Appropriation Account

 

26.The purpose of keeping Sales and Purchase Ledger Control Account is to

A. match credit sales and credit purchases

B. equate debtors' balance to creditors balance

C. verify total debtor and total creditors balances

D. determine each sales and cash purchases

 

27.  Which of the following  items  will appear in the Total Creditor Account?

A. Discount  allowed

B. Credit sales

C. Discount received

D. Cash purchases

 

28. A disadvantages of single  entry system of book-keeping is that

A. the profit for the period is reduced

B. it is difficulty to determine  profit for the period

C. total sales for the period is reduced

D. the owner of the firm withdraws money from the enterprise

 

29.  Which of the following accounts or statement is used to determine credit purchases figure in an Incomplete Records?

A.  Bank Account

B. Control Account

C. Profit and Loss Account

D. Statement of Affairs

 

30.  A trader sell goods at an average margin of 20%. His cost of sales for the month amounted to N720,000. What is his profit figure?

A. N900,000

B. N864,000

C. N840,000

D.N180,000

 

31.Donations to a club are

A. credited to the Income and Expenditure Account

B. credited to the Receipts and Payment Account

C. debited to the Income and Expenditure Account

D. debited to Donation Account

 

32. A statement of affairs shows

A. receipts and payments

B. revenue and expenditure

C. financial position

D. profit or loss

 

33. In a not-for-profit making organization, the Receipts and Payments Accounts is the equivalent of
A. Profit and Loss Accounts

B. Income and expenditure Accounts

C.  Cash book

D. Balance sheet

 

34.Where there is no agreement between the partners, the Partnership Act states that

A. 5%interest is to be paid on capital

B. Profit and losses are to be shared in proportion to their capital

C. 50% interest is to charged on drawings

D. no salary is to be paid to partners

 

35. Interest on partners drawings are debited in the

A. partners current accounts and credited to the appropriation account

B. drawings accounts and credited to the profit and loss account

C. profit and loss account and credited to the partners current account

D. profit and loss account and credited to the partners drawing account.

36.  Goodwill may be brought into the books when

A. no partner retires

B. assets are more than liabilities

C. profit for the period is high

D.  a new partner is admitted

 

37.  Working capital is the excess of

A.  current asset over fixed assets

B. current liabilities over current assets

C. fixed assets over current liabilities

D. current assets over current liabilites

 

38. Share premium is classified in the balance sheet as

A. fixed capital

B. capital reserve

C. revenue reserve

D. short term capital

 

Use the following information to answer 39 and 40

 

N

Opening stock

2,300

Purchases

11,874

Sales

18,600

Closing stock

3,000

Cost of goods sold

11,500

 

39. The percentage of gross profit to sales is

A. 61.82%

B. 38.17%

C.  28.49%

D.  14.35%

 

40.  What is the rate of stock turnover ?

A.  7 times

B. 6 times

C.  5 times

D.4 times

 

41.  When allotment of share is made applicant for shares for a company becomes

A. promoters

B. creditors

C. debtors

D. shareholders

 

42.  The objective of a department accounts is to ascertain the

A. number of staff in the department

B. department performance

C. stock held by the department

D. department labour turnover

 

43. In department accounting , when goods are sent from one department  to another for sale, the transaction is treated as

A.  inter department transfer

B. inter department sales

C. intra department purchases

D. intra department sales

 

44. A branch that keeps its own records prepares the records of transaction with the head office in the

A.  Branch Current Account

B. Branch stock Account

C.  Head Office Current Account

D. Profit and Loss Accounts

 

45.The accounting entries when goods  are sold on credit at the branch are debit

A.  Branch Debtors Account, credit Sales Accounts

B. Branch Current Account; credit Sales Accounts

C. Branch Debtors Account, Credit Head office Current Account

D.  Head office Current Account, credit Sales Accounts.

 

46.  Which of the following is not a method of charging goods to branch by its head office?

A. Net realizable value

B. Cost price

C. cost plus profit

D. Selling price

 

Use the following information to answer question 47 and 48

Nzemnman Local Government incurred the following expenditure in the year 2015

 

D

Construction of market stall

120,000

Staff salaries

40,000

Purchase of stationery

9,000

Sinking of boreholes

200,000

Building of classrooms

90,000

Maintenance of vehicles

35,000

Purchase of equipments

28,000

47.  Recurrent expenditure for the year is

 A. D112,000

B.  D84,000

C. D77,000

D.  D49,000

48. Capital expenditure for the local government is

A. D473,000

B. D438,000

C. D422,000

D.  D410,000

 

49.  A reserve is an amount

A. set aside from profit for unknown liability

B. of loss from trading activities

C. of profit from trading activities

D. set aside from profit for specific purpose

   

50. An amount set aside to meet expenses whose value is not certain is a

A. reserve

B. liability

C.  provision

D.  prepayment

WAEC SUBJECTS: 
Year of WASSCE EXAM: