WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2007 (SSCE WAEC MAY/JUNE 2007 FINANCIAL ACCOUNTING)

1. The manufacturing account is prepared to determine the cost of

A. trading

B. production

C. factory overhead

D. raw materials

 

2. Factory costs excluding prime cost is

A. overhead

B. material cost

C. fixed cost

D. administration cost

 

3. An example of direct expenses is

A. insurance

B. carriage inwards

C. purchases of raw materials

D. royalty

 

4. Which of the following is not shown in the trial balance?

A. opening stock

B. closing stock

C. discounts allowed

D. discounts received

 

5. Financial accounting information is for

A. internal use only

B. external use only

C. business use only

D. internal and external use

 

6. Which of the following statements is not true?

A. a trial balance is an account having debit and credit sides

B. expenses, losses and assets have debit balances

C. revenues, gains and liabilities have credit balances

D. a trial balance is a list of balances extracted from ledger accounts

 

7. Adobaw extracted a trial balance on 31st December 2005 and realized that the total of debit balance exceeded the total of credit balance. Pending investigation the difference should be

A. debited to suspense account

B. credited to suspense account

C. debited to assets accounts

D. credited to asset account

 

8. A debit entry in the cash account and a corresponding credit in Alieu's account indicate a

A. receipt of cash from alieu

B. payment of cash to Alieu

C. sale of goods to Alieu for cash

D. purchases of goods from alieu for cash

 

Use the following information to answer the question 9 to 11

9. Sales for the year was

A. ₦11,430

B. ₦11,295

C. ₦11,130

D. ₦10,965

 

10. Cost of sales for the year was

A. ₦10,965

B. ₦8,565

C. ₦7,215

D. ₦6,765

 

11. Gross profit for the year was

A. ₦4,650

B. ₦4,200

C. ₦3,750

D. ₦2,400

 

12. The total of the sales journal is posted to the

A. credit side of sales ledger

B. credit side f sales account

C. debit side of sales account

D. debit side of sales account

 

13. A rent ₦12,000 was paid by Taiwo to his landlord by cheque. The double entry in Taiwo's books is

A. debit Rent amount, credit bank account

B. debit rent account, credit Taiwo's account

C. debit bank account, credit rent account

D. debit Taiwo's account, credit rent account

 

14. The sum of money given to a petty cashier out of which small payments are made is a/an

A. bonus

B. loan

C. advance

D. float

 

15. The total of the discount from creditors is transferred to

A. credit side of discounts received account

B. debit side of discounts received account

C. credit side of discounts allowed account

D. debit side of discounts allowed account

 

16. The profit of sole trader increases his

A. stock

B. asset

C. liability

D. capial

 

Use following information to answer question 17 and 18

 

17. The adjusted balance as per cash book is

A. ₦10,800 Cr

B. ₦5,800Cr

C. ₦5,800Dr

D. ₦10,800Dr

 

18. The balance as per bank statement is

A. ₦8,000Cr

B. ₦6,000Cr

C. ₦6,00Dr

D. ₦8,000Dr

 

Use following information to answer question 19 and 20

 

19. The entry for rent received in the profit and loss account for the year ended 31st December 2005 is

A. credit profit and loss account with D4,500

B. credit profit and loss account with D2,500

C. debit profit and loss account with D2,500

D. debit profit and loss account with D,500

 

20. The rent receivable accrued as at 31st December 2005 is shown in the balance sheet as

A. current asset

B. current liability

C. long-term liability

D. fixed asset

 

21. Which of the following is not a cause of depreciation?

A. inflation

B. erosion and decay

C. wear and tear

D. obsolescence

 

22. Items on the left-hand side of a total debtors account are debits in the

A. purchase ledger

B. sales ledger

C. general ledger

D. journal

 

Use the following information to answer the questions 23 and 24

 

23. Credit sales for the period is

A. ₦14,078

B. ₦10,290

C. ₦8,520

D. ₦3,554

 

24. The closing balance of ₦3,368 Dr is classified in the balance sheet as a

A. fixed asset

B. current asset

C. current liability

D. capital

 

25. The cost price of a book is Le 9,000 and the selling price is Le 12,000. The mark up s

A. 6623%

B. 50%

C. 3312%

D. 25% 

 

26. In single entry and incomplete records, the net assets method used to ascertain profit is

A. net asset at the end of a period – net assets at the beginning of a period = profit + additional capital – drawings

B. net asset at the end of a period – net asset at the beginning of a period = profit – additional capital – drawings

C. net asset at the end of a period - net asset at the beginning of a period – drawings

D. net asset at the end of a period + additional capital – drawings

 

27. The assumption that a business has perpetual existence is recognized by

A. entity concept

B. periodicity concept

C. going-concern concept

D. realization concept

 

Use the following information to answer question 28 and 29

Youngsters Club has a membership of 115 persons. Each member pays an annual subscription of ₦50. During the year ended 31st December 2005, 8 members had not paid their subscriptions.

 

28. The subscriptions recorded in the Income and expenditure account for the year ended 31st December 2005 is

A. ₦5,750

B. ₦5,350

C. ₦400

D. ₦115

 

29. The subscriptions shown in the Balance sheet as at 31st December 2005 is

A. ₦400(asset)

B. ₦150(asset)

C. ₦150(liability)

D. 400(liability)

 

30. The accounting principle which states that for every debit entry, there is a corresponding credit entry is recognized by

A. realization concept

B. entity concept

C. going concern concept

D. dual aspect concept

 

31. Which of the following is not an accounting convention?

A. maternity

B. consistency

C. business entity

D. periodicity

 

32. In the absence of partnership agreement, profits and losses are shared

A. in the ratio of capitals

B. equally

C. in the ratio of drawings

D. according to services rendered

 

33. Which of the following is credited to a partnership appropriation accounts

A. Interest on capital

B. Interest on drawings

C. Partners’ salaries

D. Partner’s drawing

 

34. Which of the following formulae is used to calculate stock turnover rate?

A.

B.

C.

D.

35. Which of the following bases of accounting does not make allowance for depreciation?

A. cash basis

B. accrual basis

C. matching basis

D. commitment basis

 

Use the following to answer the questions 36 to 38

36. Total assets is

A. ₦240,000

B. ₦220,000

C. ₦200,000

D. ₦180,000

 

37. Current ratio is

A. 4 : 1

B. 3 : 1

C. 2 : 1

D. 1 : 1

 

38. Quick ratio is

A. 4 : 1

B. 3 : 1

C. 2 : 1

D. 1 : 1

 

39. Which of the following is not used for determining working capital?

A. cash

B. debtors

C. motor vehicles

D. overdraft

 

40. In the absence of partnership agreement, a loan by a partner attracts interest at

A. 20%

B. 15%

C. 10%

D. 5%

 

41. Which of the following is not a data processing method?

A. manual

B. mechanical

C. electronic

D. formatting

 

42. The correct sequence in data processing is

A. input → process → output

B. input → output → process

C. process → input → output

D. process → output → input

 

Use the following information to answer question 43

43. The value of goodwill calculated at 3 years purchase of annual profit is

A. Le 450,000

B. Le 150,000

C. Le 50,000

D. Le 48,000

 

44. The maximum amount which a company is allowed to raise through the sale of shares is

A. authorized capital

B. paid-up capital

C. issued capital

D. working capital

 

45. The double entry in the books to write off goodwill is

A. debit Goodwill account, credit capital account

B. debit Goodwill account, credit revaluation account

C. debit profit and loss appropriation account, credit Goodwill account

D. debit Trading account, credit Goodwill account

 

46. Holder of ordinary shares do not have the right to

A. participate in additional issue of shares

B. vote at annual general meetings

C. elect the board of directors

D. receive dividends at a predetermined rate

 

47. Which of the following is not a real account?

A. building account

B. motor vehicle account

C. patents account

D. furniture account

 

 

48. An example of capital gain s

A. premium

B. bonus

C. shares

D. debenture

 

49. Which of the following attracts a fixed rate of dividend?

A. ordinary shares

B. founder's shares

C. preference shares

D. deferred shares

 

50. Which of the following is a source of revenue to a local government authority?

A. poll tax

B. excise duty

C. paye tax

D. value added tax