Accounting past questions: WAEC SSCE 2020

40 objective questions, with answers. Free to read and practise.

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40 questions, one at a time, marked as you go or at the end. No account needed.

1.
A business extracted its trial balance and discovered that the total of the credit side exceeded the total of the debit side. Pending further investigation, the difference would be
1. A.credited to suspense account
2. B.debited to suspense account
3. C.credited to Profit and Loss Account
4. D.debited to Profit and Loss Account
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Answer: B debited to suspense account
2.
A computer set bought for150,000 was disposed of for N45,000 after some years of use. The profit on disposal was 7,500. Accumulated depreciation at the time of disposal was
1. A.112,500
2. B.N105,000
3. C.N97,50o
4. D.N37,500
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Answer: A 112,500
3.
A credit purchase of N200 from Osae was posted to the account of Osei. This is an error of
1. A.principle
2. B.commission
3. C.omission
4. D.original entry
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Answer: B commission
4.
A debit balance of N420 on the purchases ledger control account means that the
1. A.trade creditors were overpaid by N420
2. B.trade creditors are owed N420
3. C.goods returned to trade creditors amounted to N420
4. D.total supplies from trade creditors amounted to N420
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Answer: A trade creditors were overpaid by N420
5.
A debit entry in a fixed asset account represents
1. A.an increase in the fixed asset account
2. B.a decrease in the fixed asset account
3. C.a profit on disposal of the fixed asset
4. D.a loss on disposal of the fixed asset
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Answer: A an increase in the fixed asset account
6.
A method of charging depreciation at a fixed percentage of the net book value is
1. A.straight line method
2. B.reducing balance method
3. C.sum of the years' digits method
4. D.revaluation method
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Answer: B reducing balance method
7.
A non-cash expense chargeable against profit and loss account is
1. A.insurance payable
2. B.debenture interest
3. C.provision for doubtful debts
4. D.rent and rates
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Answer: C provision for doubtful debts
8.
A partner who contributes capital but does not participate in the day-to-day running of the business is
1. A.an active partner
2. B.a limited partner
3. C.a nominal partner
4. D.a sleeping partner
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Answer: D a sleeping partner
9.
A total of D 9,160 was entered in the sales account as D9,610. To correct this error: debit
1. A.A. Sales Account D450: credit Sales Day Book D450
2. B.Sales Day Book D 450: credit Sales Account D 450
3. C.Sales Account D450; credit Suspense Account D 450
4. D.Suspense Account D 450; credit Sales Account D450
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Answer: C Sales Account D450; credit Suspense Account D 450
10.
A trader adds 25% on cost as profit. The profit on sales of $300,000 would be
1. A.$75,000
2. B.$60,000
3. C.$50,000
4. D.$20,000
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Answer: A $75,000
11.
An example of a real account is
1. A.Computer Repairs Account
2. B.Computer Insurance Account
3. C.Office Computer Account
4. D.Depreciation of Computer Account
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Answer: C Office Computer Account
12.
An office equipment bought for use was found to be defective and returned to the supplier. The subsidiary book to record this transaction is
1. A.returns outwards journal
2. B.returns inwards Journal
3. C.purchase journal
4. D.general journal
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Answer: A returns outwards journal
13.
Debtors and credit sales for a period are D 120,00 and D 600,00 respectively. The debtor's payment period would be
1. A.1825 days
2. B.365 days
3. C.73 days
4. D.5 days
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Answer: C 73 days
14.
Discount allowed N2,000; Bad debts 1,000 Cheque received from customers 24,000 Returns inwards 500; Sales ledger balance at the beginning 2.000 The amount of sales is
1. A.N29,500
2. B.N26,000
3. C.N25,500
4. D.24,000
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Answer: B N26,000
15.
Doe and Sons Limited would enter the 3% discount in the
1. A.sales journal
2. B.cash book
3. C.purchases journal
4. D.journal proper
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Answer: C purchases journal
16.
Eze introduces his private car into his business. The aspect of the accounting equation of the business that would be affected are
1. A.Assets and Capital
2. B.Capital and Profit
3. C.Liabilities and Assets
4. D.Capital and Liabilities
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Answer: A Assets and Capital
17.
In a situation of incomplete records, profit is determined as
1. A.closing capital drawings opening capital
2. B.closing capital- drawings-opening capital
3. C.closing capital drawings - opening capital
4. D.closing capital drawings + opening capital
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Answer: C closing capital drawings - opening capital
18.
Income received in advance is treated in the balance sheet as a
1. A.current liability
2. B.current asset
3. C.long-term liability
4. D.fixed asset
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Answer: A current liability
19.
Items shown in the manufacturing account include i. Purchases of raw materials ii. Purchases of finished goods iii. Carriage inwards iv. Carriage outwards
1. A.I and II only
2. B.I and IIl only
3. C.I, ll and Il only
4. D.I, III and IV only
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Answer: C I, ll and Il only
20.
Kwamenah bought goods worth Le 50,000 from Doe and Sons Limited on the following terms: 3% trade discount: 10% cash discount. Kwamenah returned defective goods worth Le 8,000 the next day and made payment for the remaining goods on the due date The cash paid by Kwamenah was
1. A.Le 43,650
2. B.Le 43,500
3. C.Le 37,800
4. D.Le 36,660
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Answer: D Le 36,660
21.
Kwamenah bought goods worth Le 50,000 from Doe and Sons Limited on the following terms: 3% trade discount: 10% cash discount. Kwamenah returned defective goods worth Le 8,000 the next day and made payment for the remaining goods on the due date. Kwamenah would record the 10% discount in the
1. A.sales journal
2. B.cash book
3. C.purchases journal
4. D.journal proper
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Answer: C purchases journal
22.
Recognition of profit when goods are sold and the buyer takes ownership of them is in line with
1. A.realization concept
2. B.matching concept
3. C.business entity concept
4. D.going concern concept
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Answer: A realization concept
23.
The accounting concept which distinguishes an enterprise from its owners is
1. A.money measurement
2. B.dual aspect concept
3. C.going concern concept
4. D.business entity concept
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Answer: D business entity concept
24.
The accounting equation of a business shows the
1. A.current assets and current liabilities only
2. B.difference between current assets and liabilities
3. C.assets and the sources of financing them
4. D.owner's interest in the business only
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Answer: C assets and the sources of financing them
25.
The concept that guides a firm to adopt a regular method of recording transactions in its books over a period is
1. A.periodicity concept
2. B.consistency concept
3. C.going concern concept
4. D.historical cost concept
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Answer: B consistency concept
26.
The cost incurred on goods purchased for production which can be traced to a particular unit is classified as
1. A.direct labour
2. B.direct expenses
3. C.direct materials
4. D.factory overhead
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Answer: B direct expenses
27.
The document which contains the internal regulations of a limited liability company is the
1. A.Certificate of Incorporation
2. B.Prospectus
3. C.Article of Association
4. D.Memorandum of Association
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Answer: C Article of Association
28.
The document which serves as the authority to incur expenditure in the public sector is
1. A.warrant
2. B.vote
3. C.budget
4. D.voucher
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Answer: A warrant
29.
The double entry for interest on drawings by a partner is: debit
1. A.Partner's Current Account; credit Appropriation Account
2. B.Profit and Loss Account: credit Interest Account
3. C.Appropriation Account credit Partner's Current Account
4. D.Interest Account: credit Profit and Loss Account
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Answer: A Partner's Current Account; credit Appropriation Account
30.
The excess of net assets acquired over purchase consideration is
1. A.capital reserve
2. B.goodwill
3. C.purchase price
4. D.discount
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Answer: A capital reserve
31.
The internal users of accounting information are the
1. A.creditors
2. B.employees
3. C.investors
4. D.customers
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Answer: B employees
32.
The purpose of preparing a trading account is to ascertain
1. A.average stock
2. B.gross profit
3. C.cost of goods sold
4. D.cost of goods available for sale
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Answer: B gross profit
33.
Use the following information to answer the question below Ata. Bubu and Chikum were in partnership sharing profits and losses in proportion to their capital contributions: Capital Drawings Ata 40,000 8,000 Bubu 30,000 5000 Chikum 20,000 - Net profit for the year was 40,500 and the interest on capital was 5% per annum Bubu's share of profit is
1. A.N16,000
2. B.N12,000
3. C.N8,000
4. D.N4,000
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Answer: B N12,000
34.
Use the following information to answer the question below Ata. Bubu and Chikum were in partnership sharing profits and losses in proportion to their capital contributions: Capital Drawings Ata 40,000 8,000 Bubu 30,000 5000 Chikum 20,000 - Net profit for the year was 40,500 and the interest on capital was 5% per annum. The balance in Chikum's Current Account is
1. A.N14,000
2. B.N9,000
3. C.N8,000
4. D.N4,000
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Answer: B N9,000
35.
Use the following information to answer the question below Ata. Bubu and Chikum were in partnership sharing profits and losses in proportion to their capital contributions: Capital Drawings Ata 40,000 8,000 Bubu 30,000 5000 Chikum 20,000 - Net profit for the year was 40,500 and the interest on capital was 5% per annum. The profit available for sharing by the partners is
1. A.N90,000
2. B.N40,500
3. C.N36,000
4. D.N27,500
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Answer: C N36,000
36.
Use the following information to answer the question below Provision for doubtful debts------1,000Cr Bad debts--------500Dr Debtors-------50,000Dr Additional bad debts to be written off-----500 New provision for doubtful debts to stand at 5% of debtors The net figure for debtors in the balance sheet is
1. A.Le 47,025
2. B.Le 46,550
3. C.Le 45,600
4. D.Le 45,500
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Answer: D Le 45,500
37.
Use the following information to answer the question below Provision for doubtful debts------1,000Cr Bad debts--------500Dr Debtors-------50,000Dr Additional bad debts to be written off-----500 New provision for doubtful debts to stand at 5% of debtors The provision for doubtful debts to be charged to the Profit and Loss Account is
1. A.Le 2,500
2. B.Le 2,475
3. C.Le 2,450
4. D.Le 1,000
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Answer: A Le 2,500
38.
Use the following information to answer the questions below A manufacturing company's cost of production was D 200,000. The finished goods were transferred to the warehouse at D 220,000. At the end of the year, 9% of these goods were still in stock. The value of the closing stock of finished goods in the trading account is?
1. A.D37,800
2. B.D 20,000
3. C.D19,800
4. D.D 18,000
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Answer: C D19,800
39.
Use the following information to answer the questions below A manufacturing company's cost of production was D 200,000. The finished goods were transferred to the warehouse at D 220,000. At the end of the year, 9% of these goods were still in stock. The value of the closing stock of finished goods that would be shown in the balance sheet is
1. A.D37,800
2. B.D 20,000
3. C.D 19,800
4. D.D 18,000
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Answer: C D 19,800
40.
When bank charges are discovered in a bank statement, the adjustment is effected in the
1. A.bank reconciliation statement
2. B.cash book
3. C.suspense account
4. D.bank loan account
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Answer: B cash book

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