WASSCE FINANCIAL ACCOUNTING MAY/JUNE 2015 (SSCE WAEC MAY/JUNE 2015 FINANCIAL ACCOUNTING)
1. Which of the following describes a trial balance?
A. it is a special account
B. it is a list of balances in the books
C. it reveals the financial position of a business
D. it shows all the entries in the books of a business
2. Which of the following is not a feature of accounting information?
A. Affordability
B. Timelines
C. Accuracy
D. Completeness
3. Which of the following is the equation for determining net profit for loss from the records of a firms?
A. Closing capital – Drawing – Capitals Introduced
B. Opening Capital + Drawing – Closing Capital
C. Closing Capital + Opening Capital – Drawings
D. Closing Capital +Drawing – Opening Capital
4. Purchases invoice is first entered in the
A. Purchases account
B. cash book
C. sales journal
D. purchase journal
5. Assets acquired is recorded by debiting
A. Asset Account, crediting Cash Account
B. Cash Account, crediting asset account
C. Purchase of Business Account, crediting Sale of Business Account
D. Asset Account, credit purchase of business Account
6.Goods returned to a supplier is
A. debited to Returns outwards
B. credit to Returns outwards account
C. debited to Returns inward accounts
D. credited to Returns inwards accounts
7. Which of the following is a real account?
A. Plant account
B. Salaries account
C. creditors account
D. Trading account
8. The accounting ledger for goods sold on credit are debit
A. Debtors Accounts, credit Sales Account
B. credited to Returns outward account
C. debited to Returns inwards account
D. credited to Returns inwards account
9. Which of the following is not a book of original entry?
A. Sales journal
B. Purchases account
C. Cash account
D. Returns inwards journal
10. What is the ledger entry for the sale of plant and machinery on credit to Wilson?
A. Credit Sales Account and debit Cash Account
B. Credit Plant and Machinery and debit Wilson’s Account
C. Credit Sales Account and debit Wilson’s account
D. Credit plant and Machinery Account and debit Cash Account
11. Discount received Account is
A. real account
B. personal account
C. nominal account
D. profit and loss account
12. Which of the following account has a credit balance?
A. Capital
B. Cash
C. Drawings
D. Premises
13. The accounting entry to correct sales day book overcast is
A. debit Sales Account and credit Debtor Account
B. debit Suspense Account and credit Sales Account
C. debit Debtors Account and credit Suspense Account
D. debit Sales Account and credit Suspense Account
14. Which of the following expresses the accounting equating?
A. Capital +Asset = Liabilities
B. Assets – Liabilities = Capital
C. Liabilities +Current Assets = Fixed Assets
D. Liabilities – capital = Current Asset
15. When the invoice of a customer is overcast, the supplier will sent to him a
A. cheque
B. payment voucher
C. debit note
D. credit note
16. Unpresented cheque are cheque
A. that have been recorded in the cash book, but not by the bank
B. that have been received by the bank, but recorded in the cash book
C. returned by the bank
D. written, but not handed over to customers
Use the following information to answer question 17 to 19
Dr Cr
GH¢ GH¢
Advertising 36,000 ---
Electricity 60,000 ----
Advertising was paid by cheque covering 12 monthly instalments and ending March 31, 2012
Electricity was paid by cash covering 15 monthly instalments from March 1, 2011
17. Advertising owing in respect of the year ended June 30, 2012 is
A. GH¢12,000
B. GH¢9,000
C. GH¢5,000
D. GH¢3,000
18. What was the amount charged to the profit and loss account in respect of advertising for the year ended June 30, 2012
A. GH¢36,000
B. GH¢30,000
C. GH¢27,000
D. GH¢24,000
19. Electricity in arrears as at June 30, 2012 amounted to
A. GH¢ 12,000
B. GH¢ 30,000
C. GH¢ 27,000
D. GH¢ 24,000
20. The cost of putting goods into a saleable condition is charged to
A. balanced sheet
B. trial balance
C. profit and loss account
D. trading account
21. Which of the following is not a method of depreciating fixed assets
A. Revaluation
B. Straight line
C. Diminshing balance
D. Obsolescence
22. In preparing a Profit and Loss Account, a decrease in provision for doubtful debts accounts is treated as
A. Currentiability
B. expenses
C. Income
D. Current Asset
23. Which of the following items is found in sales ledger control account?
A. Discounted received
B. Total credit purchases
C Discount allowed
D. Returns outwards
24.The process of using sales ledger balance to cancel off purchases ledger is
A. balancing
B. set off
C. reconciliation
D. cancelling
25. The total of the returns outwards journal is posted to the
A. credit side of the returns outwards book
B. debit side of the returns outwards account
C. debit side of the purchases returns book
D. credit sides of the returns outwards accounts
26. Which of the following is not revealed by a firm’s accounting records?
A. Profit of a period
B. Quality of labour force
C. Credit worthiness
D. Value of assets
Use the following information to answer question 27 to 29
1/7/10 30/5/11
D D
Stock 1,460 4,200
Motor Van 3,600 3,200
Creditors 600 700
Drawing during the year amounted to D1,600
27. Opening capital is
A. D 6,660
B. D 5,060
C. D 4,460
D. D2, 960
28. Closing capital is
A. D 8,100
B. D7,400
C. D6,700
D.D5,200
29. net profit for the year is
A. D12,260
B. D3,740
C. D2,440
D. D2, 040
30. In the balance sheet of a social club, subscription owing is treated as a
A. current liability
B. current asset
C. tangible asset
D. long term liability
31. The accounting concept that allows the cost of kitchen cutlery to be expensed, though it will be used for more than one year is
A. materiality
B. accrual
C. going concern
D. business entity
32. The accounting concept that assumes that a business will continue operating for an indefinite period is
A. business entity
B. going concern
C. consistency
D. duality
33. The accounting concept that states that a firm’s financial affairs must be separated from that of the owner’s private transaction is
A. business entity
B. going concern
C. consistency
D. duality
34. Goodwill is recognized in partnership account when
A. the business makes a huge profit
B. the business has good customer relationship
C. a partner is dormant
D. a new partner is admitted
35. In which of the following accounts is interest on partners capital found?
A. Profit and loss
B. Trading
C. Income surplus
D. Profit and loss appropriation
36. Which of the following is not stated in the partnership agreement?
A. Profit sharing ratio
B. Interest on capital
C. Interest on fixed asset
D. Purpose of partnership
Use the following information to answer question 37 and 38
Mr White acquired Mr Black’s business for GH¢ 410,000. The total assets were GH¢670,000 and liabilities amounted to GH¢320,000.
37. How much was paid for goodwill?
A. GH¢300,000
B. GH¢200,000
C. GH¢90,000
D. GH¢ 60,000
38. The double entry to record the goodwill in the books is debit
A. Cash Account and credit Goodwill Account
B. Goodwill Account and credit Purchase of Business Account
C. Goodwill Account and credit Cash Account
D. Purchase of Business Account and credit Cash Account
39. The document which sets out the internal arrangement for the proper management of a company is the
A. prospectus
B. article of association
C. memorandum of association
D. certificate of incorporation
40. A person who has applied to purchase shares in a company is referred to as
A. a promoter
B.a subscriber
C. an allottee
D. an underwriter
41. Which of the following expenses is allocated according to the floor area?
A. Wages and salaries
B. Rent and rates
C. Canteen expenses
D. Discount allowed
42. Goods stolen at the branch is debited to
A. Defalcattions Account
B. Branch stock Account
C. Branch Adjustment account
D. Branch Debtors Account
43. Which of the following is a source of revenue for a local government?
A. Personal income tax
B. Company registration fees
C. Royalties
D. Market tolls
44. The instrument used to release fund which the minister of finance had earlier withheld is
A. reserve expenditure warrant
B. supplementary general warrant
C. provisional general warrant
D. supplementary statutory warrant
45. Which of the following relates to cash basis of accounting?
A. Accounts and prepayment are considered
B. Debtors and creditors are recorded
C. Fixed assets are written off in the year of purchase
D. Profit are maximized
Use the following information to answer question 46 and 47
Ade Bola
N N
Capital 40,000 30,000
Drawings 10,000 15,000
Interest on Drawing is 5%
Profit us shared equally
Net profit for the period N4,250
46. Ade’s share profit is
A. N5,500
B. N 4,250
C. N2,750
D. N1,250
47. Bola’s share of profit is
A. N4,500
B. N4,250
C. N3,000
D. N2,750
48. Which of the following is found on the credit side of a partnership’s appropriation of profit?
A. Interest on capital
B. Interest on drawing
C. share of profit
D. Drawings
49. Which of the following is a spreadsheet application?
A Excel
B Word
C. Internet
D. Windows
50. The quality of output information depends on the
A. quality of input data
B. time of processing
C. speed of processing
D. quantity of output device