Accounting past questions: WAEC SSCE 2021

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

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

1.
A business includes 50% mark-up on all its products. This would mean margin of
1. A.66 2/3%
2. B.66 1/3%
3. C.33 2/3%
4. D.33 1/3%
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Answer: D 33 1/3%
2.
A limitation of the money measurement concept is that
1. A.it results in inaccurate financial statements
2. B.financial statement is not easily understood
3. C.important non-monetary activities are not reported
4. D.the reports are not comparable to that of other businesses
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Answer: C important non-monetary activities are not reported
3.
A transaction that would cause the cash book balance to be less than the bank statement balance is
1. A.direct debit
2. B.standing order
3. C.bank charges
4. D.unpresented cheques
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Answer: D unpresented cheques
4.
Accounting concepts are rules of accounting which are to be
1. A.taught in all accounting classes
2. B.implemented by all professional bodies
3. C.followed in the preparation of financial statements
4. D.applied in correction of business errors
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Answer: C followed in the preparation of financial statements
5.
Accounting evolved out of the need of businesses for
1. A.profit making
2. B.record keeping
3. C.increasing sales
4. D.obtaining finance
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Answer: A profit making
6.
Accounting information that is useful for the intended purpose and would make a difference in decision making is
1. A.comparable
2. B.consistent
3. C.relevant
4. D.reliable
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Answer: A comparable
7.
Accounts of fixed assets are kept in the
1. A.purchases ledger
2. B.private ledger
3. C.sales ledger
4. D.general ledger
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Answer: D general ledger
8.
Acid test ratio of a firm measures the
1. A.profitability of a firm
2. B.capital adequacy of a firm
3. C.liquidity of a firm
4. D.quality of debtors of a firm
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Answer: C liquidity of a firm
9.
All cash transactions of a not-for-profit making organization are recorded in
1. A.three-column cash book
2. B.income and expenditure account
3. C.subscriptions account
4. D.receipts and payments account
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Answer: B income and expenditure account
10.
Amount owed to creditors on 31/12/19 is
1. A.₦ 406,000
2. B.₦ 342,000
3. C.₦ 316,000
4. D.₦ 226,000
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Answer: C ₦ 316,000
11.
An amount set aside out of profit for a specific purpose is a
1. A.reserve
2. B.liability
3. C.provision
4. D.discount
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Answer: A reserve
12.
Commercial activities undertaken by a social club to raise funds include
1. A.donation
2. B.bar
3. C.grant
4. D.subscription
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Answer: B bar
13.
Company as a legal entity means that it
1. A.must always have a company lawyer
2. B.can sue and be sued
3. C.must settle disputes among shareholders in court
4. D.should prepare accounts approved by a lawyer
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Answer: B can sue and be sued
14.
Goods returned to the supplier is recorded in the accounts as: debit
1. A.Sales Returns Account; credit Suppliers' Account
2. B.Purchases Returns Account; credit Supplier's Account
3. C.Supplier's Account; credit Purchases Returns Account
4. D.Supplier's Account; credit Purchases Account
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Answer: C Supplier's Account; credit Purchases Returns Account
15.
In the preparation of financial statements, full disclosure of minor events are ignored in line with
1. A.accrual concept
2. B.money measurement concept
3. C.business entity concept
4. D.materiality concept
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Answer: D materiality concept
16.
Lima paid off debt of D2,500 owed to Dongo by cash. The entries in lima's book are: debit
1. A.cash D2,500; credit Dongo D2,500
2. B.Dongo D2,500; credit cash D2,500
3. C.Bad debt D2,500; credit Dongo D2,500
4. D.Dongo D2,500; credit bad debt D2,500
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Answer: B Dongo D2,500; credit cash D2,500
17.
Manufacturing account is prepared to determine the
1. A.cost of goods sold
2. B.cost of goods produced
3. C.profit on goods produced
4. D.value of work-in-progress
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Answer: B cost of goods produced
18.
Members of a not-for-profit making organization
1. A.earn dividend on their contributions
2. B.do not receive surplus at the end of the year
3. C.are paid interest on their contributions
4. D.share profits according to their contributions
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Answer: B do not receive surplus at the end of the year
19.
Net profit of a sole proprietor is transferred to the
1. A.profit and loss account
2. B.profit and loss appropriation account
3. C.capital account
4. D.drawings account
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Answer: C capital account
20.
Other operating expenses for the period is
1. A.GH¢27,300
2. B.GH¢25,700
3. C.GH¢24,700
4. D.GH¢23,900
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Answer: C GH¢24,700
21.
Provision is made in the accounts when the amount involved in the anticipated loss is
1. A.too much
2. B.not significant
3. C.not certain
4. D.well known
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Answer: C not certain
22.
Recurrent expenditure of a local government include
1. A.erection of market stalls
2. B.repayment of loans
3. C.purchase of office equipment
4. D.purchase of office stationery
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Answer: D purchase of office stationery
23.
Reducing balance method charges depreciating as fixed percentage of the
1. A.net book value of asset
2. B.cost of asset
3. C.market value of asset
4. D.accumulated depreciation on asset
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Answer: A net book value of asset
24.
Sales account was undercast by GH¢ 1,000. When this is corrected, both the gross profit and the net profit would
1. A.increase by GH¢2,000
2. B.increase by GH¢l,000
3. C.decrease by GH¢l,000
4. D.decrease by GH¢2,000
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Answer: B increase by GH¢l,000
25.
Sales for the period is
1. A.GH¢234,400
2. B.GH¢210,500
3. C.GH¢133,600
4. D.GH¢76,900
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Answer: A GH¢234,400
26.
Subsidiary books of account are used to record transactions
1. A.made in the same period
2. B.of a similar nature
3. C.involving minor amounts
4. D.without source documents
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Answer: D without source documents
27.
Suspense account is used in the correction of
1. A.all errors in the trial balance
2. B.errors that affect the agreement of a trial balance
3. C.errors that do not affect the agreement of a trial balance
4. D.errors that affect the accuracy of the net profit
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Answer: B errors that affect the agreement of a trial balance
28.
The accounting principle of double entry states that
1. A.debit the giver and credit the receiver
2. B.assets must be equal to capital plus liabilities
3. C.every debit entry must have a corresponding credit entry
4. D.debit entries increase liabilities while credit entries increase assets
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Answer: C every debit entry must have a corresponding credit entry
29.
The concept the enables a business to determine the actual profit or loss for a particular period is
1. A.accrual concept
2. B.business entity concept
3. C.consistency concept
4. D.going concern concept
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Answer: A accrual concept
30.
The cost of goods sold for the year is Le200,000 and the mark-up is 30%. The sale for the year is
1. A.Le260,000
2. B.Le200,000
3. C.Le140,000
4. D.Le60,000
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Answer: A Le260,000
31.
The difference between the market value of goods produced and the cost of production is
1. A.net profit on goods sold
2. B.gross profit on manufacturing
3. C.closing stock of work-in-progress
4. D.prime cost of manufacturing
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Answer: B gross profit on manufacturing
32.
The final stage of accounting process is
1. A.interpretation
2. B.recording
3. C.reporting
4. D.summarizing
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Answer: C reporting
33.
The major source of revenue for central/federal government is
1. A.tenement rate
2. B.excise duty
3. C.market toll
4. D.parking roll
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Answer: B excise duty
34.
The mark-up is
1. A.88%
2. B.80%
3. C.44.44%
4. D.26.67%
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Answer: C 44.44%
35.
The objective of preparing departmental account is to determine the
1. A.sales of each department
2. B.total cost attributable to each department
3. C.capital employed by each department
4. D.profitability of each department
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Answer: C capital employed by each department
36.
The original record containing the details of a transaction which serves as a basis for posting is
1. A.general ledger
2. B.source document
3. C.subsidiary book
4. D.trial balance
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Answer: C subsidiary book
37.
The partner who partakes in the management of the firm and assumes personal responsibility for the firm's debts is a
1. A.general partner
2. B.sleeping partner
3. C.quasi partner
4. D.limited partner
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Answer: A general partner
38.
The petty cash account has an imprest of GH¢36,000 and a debit balance of GH¢10,000 at the end of the month.The reimbursement required would be
1. A.GH¢46,000
2. B.GH¢36,000
3. C.GH¢26,000
4. D.GH¢10,000
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Answer: C GH¢26,000
39.
The stock turnover period is
1. A.88 days
2. B.73 days
3. C.58 days
4. D.41 days
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Answer: A 88 days
40.
The type of stock recorded in the trading account of a manufacturing business is
1. A.raw material
2. B.work-in progress
3. C.consumables
4. D.finished goods
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Answer: A raw material
41.
The value of goods sent to a branch is debited to the
1. A.goods sent to branch account
2. B.branch debtors account
3. C.branch adjustment account
4. D.branch stock account
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Answer: A goods sent to branch account
42.
Use the following information below to answer this question. Attama and Wawa were in partnership sharing profits and losses in the ratio 4:3. Attama was entitled to a salary of D13,000 per annum. A net profit of D34,000 was made for the year. Attama's share of profit is
1. A.D21,000
2. B.D19,428
3. C.D12,000
4. D.D9,000
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Answer: C D12,000
43.
Use the following information below to answer this question. Attama and Wawa were in partnership sharing profits and losses in the ratio 4:3. Attama was entitled to a salary of D13,000 per annum. A net profit of D34,000 was made for the year. The residual profit of the business for the year is
1. A.D47,000
2. B.D34,000
3. C.D22,000
4. D.D21,000
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Answer: A D47,000
44.
Use the following information to answer this question ₦ Creditors (01/01/19) 223,000 Creditors (31/12/19) 316,000 Credit purchases 1,426,000 Discount received 64,000 Company's cheque dishonoured 90,000 Payment to creditors is
1. A.₦ 1,423,000
2. B.₦ 1,359,000
3. C.₦ 1,333,000
4. D.₦ 1,295,000
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Answer: C ₦ 1,333,000
45.
Use the following information to answer this question GH¢ Monthly rent payable 3,000 Rent paid on 01/01/2018 48,000 Rent expense for 2018 was
1. A.GH¢84,000
2. B.GH¢48,000
3. C.GH¢36,000
4. D.GH¢12,000
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Answer: C GH¢36,000
46.
Use the following information to answer this question GH¢ Monthly rent payable 3,000 Rent paid on 01/01/2018 48,000 The balance of rent in the balance sheet would be
1. A.current asset of GH¢36,000
2. B.current asset of GH¢12,000
3. C.current liability of GH¢12,000
4. D.current liability of GH¢48,000
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Answer: B current asset of GH¢12,000
47.
Use the following information to answer this question. Cost of assets (01/01/18) ₦ 600,000. Annual depreciation charge is 15% on reducing balance basis. Depreciation for the year 2019 is
1. A.₦180,000
2. B.₦166,500
3. C.₦90,000
4. D.₦76,500
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Answer: D ₦76,500
48.
Use the following information to answer this question. Cost of assets (01/01/18) ₦ 600,000. Annual depreciation charge is 15% on reducing balance basis. The net book value of the asset at 31/12/19 is
1. A.₦523,500
2. B.₦510,000
3. C.₦433,500
4. D.₦420,000
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Answer: C ₦433,500
49.
Wages accrued is shown in the balance sheet as
1. A.an asset
2. B.an income
3. C.an expense
4. D.a liability
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Answer: D a liability
50.
Where partners maintain a fluctuating capital account, partners' share of profit is credited to
1. A.capital account
2. B.profit and loss appropriate account
3. C.current account
4. D.profit and loss account
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Answer: A capital account

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