WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2000 (SSCE WAEC MAY/JUNE 2000 FINANCIAL ACCOUNTING)

1. Which of the following is not an intangible asset

A. License

B. Patents

C. Trade Marks

D. Fixtures

2.  Which of the following is a capital expenditure

A.  Salaries and wages

B. Stationery

C. Repairs of motor vehicles

D. Purchase of Vehicles

3. Shares of goods for N600 was not posted. This is an error of

A. omission

B. commission

C. principle

D. compensation

4. Shares sold at the nominal value are issued at

A. a discount

B. a premium

C. a loss

D.  par

Use the following information to answer 6 to 9

Williams and Jacob are in partnership but there is no partnership agreement. The capital contributed are N60,000 and N40,000 respectively. Profit for the year is N20,000. Interest on capital is 10%.

 

6. What is Williams' share of profit?

A. N12,000

B. N10,000

C. N8,000

D. N5,000

7. What is Jacob's share of profit?

A. N10,000

B. N8,000

C. N5,000

D. N4,000

 

8. If Williams introduces cash of N10,000 by way of loan to the partnership, how much interest will he earn per annum on the loan?

A. N2,000

B. N1,500

C. N1,000

D. N500

 

9. What is Williams' interest on capital?

A. N10,000

B. N7,000

C. N6,000

D. N4,000

 

10. In a bonus issue of one new share for every four held, a holder of 100,000 shares will get additional shares of

A. 50,000

B. 25,000

C. 20,000

D. 10,000

 

 

11. A partner who has full power of participating in the conduct of a partnership business is a

A. general partner

B. limited partner

C. sleeping partner

D. nominal partner

 

12. The ratio which measures the solvency of a firm is the

A. quick ratio

B. gross profit over sales ratio

C. stock turnover ratio

D. debtors turnover ratio

 

13. When goods are purchased on account, the accounting entries are

A. debit purchases account, credit supplier's account

B. credit purchases account, debit supplier's account

C. credit bank account, debit purchases account

D. debit bank account, debit purchases account

 

14. Closing stock was overstated. The effect is that

A. amount of goods available was understated

B. cost of goods sold was overstated

C. amount of sales was understated

D. gross profit was overstated

 

Use the following information to answer question 15 and 16

XYZ Enterprises bought ABC Enterprises by issuing 30,000 ordinary shares of N1 each at a discount of 5%. The assets of ABC Enterprises are stock N18,000. Debtors N11,000.

 

15. The purchase consideration was

A. N31,500

B. N30,000

C. N28,500

D. N28,000

 

16. XYZ Enterprises bought ABC Enterprises by issuing 30,000 ordinary shares of N1 each at a discount of 5%. The assets of ABC Enterprises are stock N18,000. Debtors N11,000. Capital reserve was

A. N1,500

B. N1,000

C. N500

D. N150

 

17. The entries necessary for recording profit loading on goods sent to branch are

A. debit branch stock account, credit branch stock adjustment account

B. credit branch stock Adjustment account, debit goods, debit goods sent to branch account

C. debit goods sent to branch account, credit branch stock account

D. debit branch stock adjustment account, credit branch stock account

 

18. Expenses incurred when incorporating a company are

A. preliminary expenses

B. selling expenses

C. administrative expenses

D. financial expenses

 

19. Gross Profit of a business is the

A. excess of sales over all the trading expenses

B. difference between sales and purchases

C. excess of sales over the cost of goods sold

D. difference between discounts received and discount allowed

 

20. Prepaid rent of N650 had been recorded as N560. This is an error of

A. commission

B. principle

C. compensation

D. original entry

 

21. When a buyer is undercharged, the seller forwards

A. a debit note

B. a credit note

C. an undercast note

D. a payment receipt

 

Use the following information to answer question 22 and 23

Rent owing as at 31st December 1998, N800. Rent paid up to 31st December 1998, N1,700. Rent owing as at 1st January 1998, N500.

 

22. Rent charged to the profit and loss account for the year 1998 is

A. N2,000

B. N1,700

C. N1,400

D. N1,300

 

23. The closing balance for 1998 is an item under

A. current lability

B. current asset

C. long term liability

D. fixes asset

 

24. In computing, external storage is called

A. backing storage

B. logging storage

C. primary storage

D. extra storage

 

25. Profit expressed as a fraction of the selling price is known as

A. mark-up

B. margin

C. gross profit

D. net profit

 

26. In computing, ALU stands

A. accounting logic unit

B. arithmetic logic unit

C. access logic unit

D. additional liability unit

 

27. Which of the following is not a petty cash book item? Purchase of

A. stationery

B. postage stamps

C. cutlass for gardeners

D. machinery

 

Use the following information to answer questions 28 to 30

 

28. What is the cost of raw materials consumed?

A. N18,500

B. N16,000

C. N15,000

D. N12,500

 

29. What is the cost of production?

A. N19,000

B. N18,500

C. N15,000

D. N12,500

 

30. What is the prime cos?

A. N19,000

B. N18,000

C. N17,500

D. N17,000

 

31. The vote book in Public Sector Accounting is used to

A. register the names of voters

B. control expenditure

C. control government policy

D. record revenue accuring to the government

 

 

32. The accounting entry for depreciation at the end of each year is to debit

A. provision for depreciation account and credit machinery account

B. provision for depreciation account and credit profit and loss account

C. trading account abd credit provision for depresiation account

D. manufacturing account and credit provision for depreciation account

 

33. An account is said to have a debit balance because

A. the first entry made in it is on its debit side

B. there aer more entries on the debit side than on the credit side

C. total value of debit entries is more than total value of credit entries

D. there is no entry at all on the dbit side

 

Use the following below to answer question 34 to 36

 

A motor vehicle bought for N16,000 was estimated to have a useful life span of 4 years and a scrap of N2,000.

34. What is the net book value of the motor vehicle at the end of the third year, using the straight line method?

A. N9,000

B. N5,500

C. N3,500

D. N2,000

 

35. What is the amount of depreciation charged per annum?

A. N9,000

B. N5,500

C. N4,000

D. N3,500

 

36. If the vehicle is sold for N6,000 at the end of third year, what is the profit or loss on sale?

A. N1,000 profit

B. N500 profit

C. N500 loss

D. N1,000 loss

 

37. Which of the following is not an example of input device?

A. card reader

B. keyboard

C. visual display unit

D. central processing unit

 

38. The double entry for increasing provision for bad debt is debit

A. debtor's account, credit provision for bad debt account

B. profit and loss account, credit debtor's account

C. debtor's account, credit profit and loss acount

D. profit and loss account, credit provision for bad debt account

 

39. Bills receivable is a

A. current liability

B. current asset

C. long-term liability

D. fictitious asset

 

40. How much did Olu sell goods bought at N1,000 if he sells at a margin of 20% on selling price?

A. N1,250

B. N1,200

C. N1,000

D. N250

 

41. Which of the following accounts has a debit balance?

A. capital reserve

B. revenue reserve

C. share premium

D. share discount

 

42. A list of all credit and debit balance from the ledger accounts is

A. trial balance

B. profit and loss statement

C. statement of affairs

D. balance sheet        

Use the following information to answer 43 to 46

 

43. The cost of goods sold is

A. N5,350

B. N5,150

C. N4,500

D. N4,250

 

44. Gross profit is

A. N10,350

B. N10,200

C. n9,500

D. N9,100

 

45. Net sales is

A. N15,000

B. N14,750

C. N14,600

D. N14,450

 

46. Net profit is

A. N9,100

B. N7,850

C. N7,750

D. N6,500

 

 

 

47. The capital of not-for profit making organization is

A. capital reserve fund

B. accumulated fund

C. endowment fund

D. development fund

 

48. Which of the following is used in locating errors in the ledger?

A. trading account

B. trial balance

C. control account

D. journal proper

 

49. A reserve is an amount

A. to be paid to creditors

B. set out of profit for future use

C. for paying dividends

D. recovered from debts earlier written off

 

50. The document which authorizes the Minister of Finance to release fund for government expenditure is

A. a warrant

B. a bank cheque

C. an order

D. a vote book