WASSCE JUNE 2002 FINANCIAL ACCOUNTING (BOOK – KEEPING AND ACCOUNTS)

1. The accounting equation is

A. Capital less current assets amounts to Liabilities

B. assets less liabilities amount to capital

C. fixed assets and current Liabilities amount to capital

D. capital assets amount t liabilities

 

2. A fixed amount set aside for petty expenses is

A. imprest

B. float

C. receipt

D. fund

 

3. Rent payable Account is an example of a

A. nominal account

B. real account

C. personal account

D. private account

 

4. The source document sent by the seller to the buyer when goods are returned is

A. credit note

B. purchase invoice

C. sales invoice

D. debit invoice

 

5. Which of the following is not a liability?

A. accrued wages

B. rent arrears

C. prepayment

D. insurance due but unpaid

 

6. Discounts allowed is charged to

A. trading account

B. balance sheet

C. current account

D. profit and loss account

 

7. Which of the following belongs to the normal ledger?

A. salaries account

B. fixtures account

C. stock account

D. debtors account

 

 

 

Use the following information to answer question 8 to 11

8. What is the cost of raw materials consumed?

A. N34,500

B. N31,500

C. N28,500

D. N28,500

 

9. The prime cost is

A. N68,700

B. N65,700

C. N62,700

D. N58,800

 

10. The amount of factory overhead is

A. N42,300

B. N31,800

C. N28,800

D. N21,000

 

11. The cost of goods manufactured is

A. N101,250

B, N98,250

C. N94,500

D. N91, 500

 

12. Which of the following affects the Trial Balance ?

A. Commission

B. Omission

C.  Principle

D. Single entry

 

13. Carriage inward expenses of a business is treated in

A. trading account

B. balance sheet

C. appropriation account

D. profit and loss account

 

14. A provision is

A. an amount set out of profit for other uses

B. an amount of loss from trading activities

C. an expense of buisiness to be paid for in cash

D. a loss in value of all business assets

 

15. The term bad debt is used to describe

A. a debt that cannot be recovered

B. a debt that is long over due

C. an overcharge on a debtor's account

D. a debt owned by a former employee

 

16. The double entry for refund of unsuccessful application monies is debit

A. application for shares account, credit bank account

B. bank account, credit application for shares account

C. allotment account, credit bank account

D. cash account, credit bank account

 

 

17. Which of the following is not an accounting concept?

A. entity

B. going-concern

C. consistency

D. historical cost

 

Use the following information to answer 18 to 20

An asset was bought on 1st January, 1995 for N60,000. Depreciation was provided for annually at 20% on cost. It was sold for N21,000 on 30th October 1998. Depreciation is charged fully in the year of disposal.

 

18. The net book value at the time of sale was

A. N39,000

B. N16,000

C. N14,000

D. N12,000

 

19. Accumulated depreciation is

A. N48,000

B. N39,000

C. N36,000

D. N21,000

 

 

20. Profit on sale is

A. N24,000

B. N21,000

C. N18,000

D. N9,000

 

23. The document authorising an officer to incur expenditure is known as

A. virement

B. budget

C. warrant

D. vote

 

24. When shares are oversubscribed, the promoters may decide to scale down. When this is done, the shares are issued proportionately

A. on pro-rate

B. at discount

C. at par

D. at premium

 

25. The amount for which a business is sold is

A. purchase consideration

B. premium

C. capital reserve

D. goodwill

 

26. Into how many types can general purpose computers be classified?

A. three

B. four

C. five

D. six

 

Use the following information to answer question 27 to 30

27.The value of current liabilities is

A. N32,750

B. N20,150

C. N19,750

D. N11,000

 

28. The value of current assets is

A. N28,500

B. N20,150

C. N19,750

D. N17,000

 

29. The opening capital is

A. N32,000

B. N26,000

C. N25,600

D. N14,000

 

30. The value of fixed assets is

A. N57,300

B. N47,500

C. N40,000

D. N37,500

 

31. The financial plan of the government for a year is contained in the

A. analysis book

B. gazette

C. budget

D. vote

 

 

The capital sum which represents the difference between he asset and liabilities of a society or club is

A. working capital

B. accumulated fund

C. consilidated fund

D. reserved capital

18

The total of the purchases day book is posted to the purchases account in the

A. purchases ledger

B. general ledger

C. private ledger

D. nominal ledger

 

 

 

32. The price paid for the purchase of a business is

A. credited to cash accounted to cash account and debited to vendor's account

B. debited to cash account and credited to Vendor's Account

C. debited to business purchase Account and credited to Asset Account

D. credited to cash Account and debited to Asset Account

 

33. A deduction from the sales price of goods that is allowed if payment is made within a specified period of time

A. trade discount

B. cash discount

C. quantity discount

D. rebate

 

34.  A trader paid N15,000 on rent for 15 months but charged N12,000 to the Profit and Loss account for the year. This is the concept of

A. accrual

B. materiality

C. prudence

D. going-concern

 

35. Partner's interest on capital is shown in the

A. profit and loss Account

B. oartners fixed capital account

C. profit and loss appropriation account

D. trading account

 

Use the following information to answer the given question 36 to 39

36. The interest on Tunde's capital is

A. N10,000

B. N5,000

C. N4,000

D. N1,500

 

37. The shares of profit of each partner is

A. N20,000

B. N10,500

C. N5,000

D. N4,000

 

38. Tunde's Current Account balance on 31st December, 200 is

A. N30,000

B. N25,500

C. N25,000

D. N10,000

 

39. Baba's Current Account balance on 31st December, 2000 is

A. N35,500

B. N25,000

C. N21,000

D. N20,000

 

40. Depreciation is

A. cost of repairs incurred on a fixed asset

B. a charge for the wear and tear of fixed assets

C. the cost incurred on replacing a fixed asset

D. provision for loss of fixed asset

 

41. Cash discount received is shown in the

I. cash

II. Discount Received Account

III. Suppliers' Account

A. I and II

B. II and III

C. I and III

D. I, II and III

 

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

A. diskette

B. card

C. keyboard

D. printer

 

Use the following information to answer question 43 to 45

A trader paid insurance premium of N45,000 for 15 months ended 31st March, 2000. He prepares account to 31st December.

 

43. How much is charged to profit and loss account for the year 2000?

A. N45,000

B. N42,000

C. N36,000

D. N33,000

 

44. How much is carried in the Balance Sheet at 31st December, 2000?

A. N45,000

B. N12,000

C. N9,000

D. N4,500

 

45. The amount carried in the Balance sheet is classified as

A. current asset

B. current liability

C. capital

D. long-term liability

 

46. The total amount of money set aside for a particular purpose by government is

A. fund

B. vote

C. virement

D. budget

 

47. "Accountants do not count chickens before they are climbed". This is the concept of

A. accrual

B. materiality

C. realisation

D. going-concern

 

48. Subscriptions in arrears is treated in the balance sheet of a club as

A. current liability

B. intangible assets

C. fictitious asset

D. current asset

 

49. A suspense account is used to

A. record sales

B. agree the trial balance

C. record purchases

D. prepare the balance sheet

 

50. Which of the following belongs to the sales ledger?

A. Motor Van Disposal account

B. Bank Account

C. Debtors Account

D. Rent and Rates Account