Accounting past questions: WAEC SSCE 2023

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 should not lay claim to any profit before it is earned. This is in accordance with the
1. A.going concern concept
2. B.prudence concept
3. C.dual aspect concept
4. D.consistency concept
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Answer: B prudence concept
2.
A crane hired by a building construction company would be classified as
1. A.a financial cost
2. B.an administration cost
3. C.a direct manufacturing cost
4. D.an overhead cost
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Answer: D an overhead cost
3.
A partnership is formed by
1. A.two or more individuals
2. B.only one person
3. C.two individuals only
4. D.two or more companies
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Answer: A two or more individuals
4.
A reason a business is not able to keep full set of accounting records is that
1. A.the business does not make profit
2. B.double entry is expensive to maintain
3. C.the business is not a trading concern
4. D.double entry shows the true profit
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Answer: B double entry is expensive to maintain
5.
Beauty started business with ₦40,000, made a profit of ₦50,000 and ended the year with ₦70,000 capital. What would have accounted for the closing capital?
1. A.Drawings of ₦20,000 was made
2. B.The opening capital of ₦40,000 was invested
3. C.Beauty was paid a salary of ₦90,000
4. D.Cash shortage of ₦30,000 was recorded
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Answer: C Beauty was paid a salary of ₦90,000
6.
Carriage inwards on raw materials is recorded in the
1. A.balance sheet
2. B.profit and loss account
3. C.trading account
4. D.manufacturing account
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Answer: D manufacturing account
7.
Discount allowed is shown in financial statements as
1. A.an asset
2. B.an income
3. C.a liability
4. D.an expenses
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Answer: D an expenses
8.
If sales is D 12,000 and the gross profit mark -up percentage is 25%. What is the cost of sales?
1. A.D 2,400
2. B.D 9,000
3. C.D 9,600
4. D.D 3,000
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Answer: B D 9,000
9.
In the final account of a limited liability company, debenture interest paid is recorded in the
1. A.capital account
2. B.profit and loss account
3. C.trading account
4. D.current account
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Answer: B profit and loss account
10.
Memoradum branch account is prepared to determine
1. A.gross profit
2. B.credit sales
3. C.closing stock
4. D.opening stock
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Answer: A gross profit
11.
One of the internal users of accounting information is the
1. A.management
2. B.government
3. C.creditors
4. D.investors
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Answer: A management
12.
Profit distributed to ordinary shareholders of a limited liability company is
1. A.dividend
2. B.interest
3. C.surplus
4. D.reserve
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Answer: A dividend
13.
Reliability as a quality of accounting information means that accounting
1. A.rules and guidelines are applied
2. B.information is prepared based on evidence
3. C.information is comprehensive
4. D.report is prepared promptly
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Answer: B information is prepared based on evidence
14.
Suppliers' personal account are found in the
1. A.private ledger
2. B.nominal ledger
3. C.purchases ledger
4. D.sales ledger
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Answer: C purchases ledger
15.
The accounting concept which is the basis upon which assets of a business are valued is the
1. A.dual aspect concept
2. B.consistency concept
3. C.accrual concept
4. D.historical concept
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Answer: D historical concept
16.
The accounts maintained in the nominal ledger are
1. A.liabilites and capital
2. B.assets and liabilites
3. C.income and capital
4. D.expenses and income
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Answer: D expenses and income
17.
The accumulated fund for a not-for-profit making organization is
1. A.capital + liabilities
2. B.assets - liabilites
3. C.assets + liabilites
4. D.assets - liabilities + capital
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Answer: B assets - liabilites
18.
The allocation of funds from treasury to accounting heads in public sector is
1. A.float
2. B.vote
3. C.virement
4. D.budget
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Answer: B vote
19.
The concept which underlines double entry bookkeeping is
1. A.money measurement concept
2. B.historical cost concept
3. C.accrual concept
4. D.duality concept
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Answer: D duality concept
20.
The error that affects the agreement of a trial balance totals is
1. A.error of commission
2. B.undercasting
3. C.compensating error
4. D.error of principle
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Answer: B undercasting
21.
The purchase day book is used to record
1. A.purchases returns
2. B.cash purchase
3. C.total purchases
4. D.credit purchase
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Answer: D credit purchase
22.
The reason for treating carriage inwards in the trading account is because
1. A.it is an expense on goods sold to customer
2. B.carriage outwards is an expense item in the profit and loss account
3. C.it is an expense on goods purchased
4. D.it does not appear in the balance sheet
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Answer: C it is an expense on goods purchased
23.
The source of funds available to a local government/district assembly includes
1. A.common fund allocation
2. B.none of the above
3. C.excise duties
4. D.road tolls
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Answer: B none of the above
24.
The two column cash book records
1. A.all receipts in cash only and payments by cheque
2. B.receipts and payments in cash only
3. C.all receipts and payments both in cash and by cheque
4. D.receipts and payments by cheque only
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Answer: C all receipts and payments both in cash and by cheque
25.
Use the following information to answer the question
$
Trade creditors (31/12/2020) 4,000
Paid for purchases in 2021: Cheques 110,000
Carriage inwards 1,000
Trade creditors (31/12/2021) 6,000
The balance c/d on trade creditors will be recorded in the balance sheet as
1. A.current asset
2. B.short-term liability
3. C.long-term liability
4. D.fixed asset
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Answer: B short-term liability
26.
Use the following information to answer the question
$
Trade creditors (31/12/2020) 4,000
Paid for purchases in 2021: Cheques 110,000
Carriage inwards 1,000
Trade creditors (31/12/2021) 6,000
The total purchase in 2021 is
1. A.$121,000
2. B.$113,000
3. C.$117,000
4. D.$111,000
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Answer: D $111,000
27.
Use the following information to answer the question
Le
Capital (01/01/2020) 1,934,600
Capital (31/12/2020) 2,530,000
Expenses 3 45,900
Drawings for 2020 72,500
Additional capital for 2020 250,000
The gross profit for the year is
1. A.Le 763,800
2. B.Le 595,400
3. C.Le 417,900
4. D.Le 167,900
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Answer: C Le 417,900
28.
Use the following information to answer the question
Le
Capital (01/01/2020) 1,934,600
Capital (31/12/2020) 2,530,000
Expenses 346,900
Drawings for 2020 72,500
Additional capital for 2020 250,000
The net profit for 2020 is
1. A.Le 522,900
2. B.Le 417,900
3. C.Le 595,400
4. D.Le 72,000
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Answer: B Le 417,900
29.
Use the following information to answer the question Ant and Bee withdrew GH⊄ 14,000 and GH⊄ 10,000 respectively at 8% per annum from the partnership. The interest on drawings for Ant is
1. A.GH⊄ 800
2. B.GH⊄ 1,920
3. C.GH⊄ 1,120
4. D.GH⊄ 700
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Answer: C GH⊄ 1,120
30.
Use the following information to answer the question Ant and Bee withdrew GH⊄ 14,000 and GH⊄ 10,000 respectively at 8% per annum from the partnership. The total interest on drawings to be charged to profit and loss appropriation account is
1. A.GH⊄ 1,120
2. B.GH⊄ 1,920
3. C.GH⊄ 700
4. D.GH⊄ 800
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Answer: B GH⊄ 1,920
31.
Use the following information to answer the question Sammy acquired plant an machinery costing ₦120,000 with an estimated useful life of 4 years and residual value of ₦2,000. The sum of the year digits method is used. The depreciation to be charged for the third year will be
1. A.₦3,000
2. B.₦4,000
3. C.₦1,000
4. D.₦2,000
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Answer: B ₦4,000
32.
Use the following information to answer the question Sammy acquired plant an machinery costing ₦120,000 with an estimated useful life of 4 years and residual value of ₦2,000. The sum of the year digits method is used. The value of the asset at the end of the first year is
1. A.₦5,000
2. B.₦8,000
3. C.₦2,000
4. D.₦3,000
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Answer: B ₦8,000
33.
Use the following information to answer the question Taurus Ltd was incorporated with the legal right to issue five million ordinary shares. The company has issued three million of the shares at GH⊄ 0.60 per share. To date, the company has made calls of GH⊄ 0.40 per share. All calls have been paid by shareholders except for GH⊄ 100,000 owing from one shareholder. The authorized number of shares is
1. A.3,000,000
2. B.8,000,000
3. C.5,000,000
4. D.100,000
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Answer: C 5,000,000
34.
Use the following information to answer the question Taurus Ltd was incorporated with the legal right to issue five million ordinary shares. The company has issued three million of the shares at GH⊄ 0.60 per share. To date, the company has made calls of GH⊄ 0.40 per share. All calls have been paid by shareholders except for GH⊄ 100,000 owing from one shareholder. The paid up share capital is
1. A.GH⊄ 300,000
2. B.GH⊄ 250,000
3. C.GH⊄ 500,000
4. D.GH⊄ 600,000
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Answer: D GH⊄ 600,000
35.
Use the following information to answer the question The following transactions relate to Osei Enterprises for the year ended 31st December 2020.
D
Purchases 160,000
Returns outwards 880
Carriage inwards 740
Returns inwards 620
Sales 195,000
Salaries 27,600
Closing stock 14,100
The cost of goods available for sale is
1. A.D 175,860
2. B.D 175,380
3. C.D 175, 120
4. D.D 175,460
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Answer: D D 175,460
36.
Use the following information to answer the question The following transactions relate to Osei Enterprises for the year ended 31st December 2020.
D
Purchases 160,000
Returns outwards 880
Carriage inwards 740
Returns inwards 620
Sales 195,000
Salaries 27,600
Closing stock 14,100
The gross profit
1. A.D 39,360
2. B.D 38, 620
3. C.D 36,360
4. D.D 39,220
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Answer: C D 36,360
37.
Use the following information to answer the question The following transactions relate to Osei Enterprises for the year ended 31st December 2020.
D
Purchases 160,000
Returns outwards 880
Carriage inwards 740
Returns inwards 620
Sales 195,000
Salaries 27,600
Closing stock 14,100
The net profit is
1. A.D 21, 760
2. B.D 18, 260
3. C.D 21, 020
4. D.D 21, 620
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Answer: C D 21, 020
38.
Use the following information to answer the question The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
D
Balance b/f 200,000
Commission received 180,000
Receipts from Ojah 98,000
Electricity bill 40,000
Rent 73,400
Drawings 28,600
Insurance 12,800
The balance brought down at the end of the month is
1. A.D 278,300
2. B.D 154,800
3. C.D 478,300
4. D.D 323,500
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Answer: D D 323,500
39.
Use the following information to answer the question The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
D
Balance b/f 200,000
Commission received 180,000
Receipts from Ojah 98,000
Electricity bill 40,000
Rent 73,400
Drawings 28,600
Insurance 12,800
The total expenses for the month is
1. A.D 278,300
2. B.D 323,500
3. C.D 478,300
4. D.D 154,800
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Answer: D D 154,800
40.
Use the following information to answer the question The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
D
Balance b/f 200,000
Commission received 180,000
Receipts from Ojah 98,000
Electricity bill 40,000
Rent 73,400
Drawings 28,600
Insurance 12,800
The total income for the month is
1. A.D 278,000
2. B.D 180,000
3. C.D 154,800
4. D.D 306,900
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Answer: A D 278,000
41.
Use the following information to answer the question The health department of Banjul Local Government incurred the following expenditure in 2020:
Le
Construction of hospital wards 200,000
Purchase of hospital beds 20,000
Purchase of stationeries 15,000
Salaries and wages 60,000
Purchase of drugs 50,000
Purchase of x-ray machine 100,000
The capital expenditure for the year is
1. A.Le 125,000
2. B.Le 320,000
3. C.Le 370,000
4. D.Le 455,000
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Answer: B Le 320,000
42.
Use the following information to answer the question The health department of Banjul Local Government incurred the following expenditure in 2020:
Le
Construction of hospital wards 200,000
Purchase of hospital beds 20,000
Purchase of stationeries 15,000
Salaries and wages 60,000
Purchase of drugs 50,000
Purchase of x-ray machine 100,000
The recurrent expenditure for the year is
1. A.Le 370,000
2. B.Le 125,000
3. C.Le 320,000
4. D.Le 445,000
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Answer: B Le 125,000
43.
Use the following information to answer the questions The transactions of All Girls' Social Club for the year 2021 are as follows: Bar sales D 30,000; Bar purchases D 17,000 and Rent D 1,200
31st December 2020 2021
D D
Stock at bar 1400 1600
Owing for bar supplies 6500 7300
The net profit on the bar to be transferred to the income an expenditure account for the year ended 31st December 2021 is
1. A.D 11,600
2. B.D 11,800
3. C.D 13,000
4. D.D 12,400
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Answer: A D 11,600
44.
Use the following information to answer the questions The transactions of All Girls' Social Club for the year 2021 are as follows: Bar sales D 30,000; Bar purchases D 17,000 and Rent D 1,200
31st December 2020 2021
D D
Stock at bar 1400 1600
Owing for bar supplies 6500 7300
The value of purchases for the year is
1. A.D 16,200
2. B.D 17,800
3. C.D 17,000
4. D.D 16,800
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Answer: B D 17,800
45.
Wages of machine operators in manufacturing account are treated as
1. A.indirect expenses
2. B.direct expenses
3. C.direct labour
4. D.indirect labour
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Answer: C direct labour
46.
Which of the following items are apportioned on the basis of purchases in preparing departmental accounts?
1. A.Lighting and cooling expenses
2. B.Carriage outwards
3. C.Carriage inwards
4. D.Selling and distribution expenses
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Answer: C Carriage inwards
47.
Which of the following items is a tangible asset?
1. A.Copyright
2. B.Machinery
3. C.Goodwill
4. D.Lease
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Answer: B Machinery
48.
Which of the following items is classified as capital expenditure in public sector accounting?
1. A.Training and conference cost
2. B.Construction works's cost
3. C.Wages and salaries
4. D.Financial charges
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Answer: B Construction works's cost
49.
Which of the following items is found in the profit and loss account of a company?
1. A.Proposed dividends
2. B.Transfer to general reserves
3. C.Director's remuneration
4. D.Proceeds from issue of shares
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Answer: A Proposed dividends
50.
Which of the following rules is applicable in the absence of a partnership agreement? Interest is payable
1. A.on drawings at the rate of 5% per annum
2. B.on any contribution in excess of agreed capital at 5% per annum
3. C.at 5% per annum on the current account balances
4. D.on agreed capital contributed at 5% per annum
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Answer: B on any contribution in excess of agreed capital at 5% per annum

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$
Trade creditors (31/12/2020)	4,000
Paid for purchases in 2021: Cheques	110,000
Carriage inwards	1,000
Trade creditors (31/12/2021)	6,000

Le
Capital (01/01/2020)	1,934,600
Capital (31/12/2020)	2,530,000
Expenses	3 45,900
Drawings for 2020	72,500
Additional capital for 2020	250,000

D
Purchases	160,000
Returns outwards	880
Carriage inwards	740
Returns inwards	620
Sales	195,000
Salaries	27,600
Closing stock	14,100

D
Balance b/f	200,000
Commission received	180,000
Receipts from Ojah	98,000
Electricity bill	40,000
Rent	73,400
Drawings	28,600
Insurance	12,800

Le
Construction of hospital wards	200,000
Purchase of hospital beds	20,000
Purchase of stationeries	15,000
Salaries and wages	60,000
Purchase of drugs	50,000
Purchase of x-ray machine	100,000

31st December	2020	2021
D	D
Stock at bar	1400	1600
Owing for bar supplies	6500	7300