WAEC Accounting Past Questions & Answers - Page 101

501.

In accounting context, purchases refer to

A.

Goods bought and paid only

B.

Goods bought for resale only

C.

Goods bought on credit only

D.

Goods bought to be used in the firm

Correct answer is B

Purchase are goods or stocks bought for the purpose of resselling.

502.

In the preparation of the trading account of omuya Ltd., the company included credit sales of N18,000 made during the year. The concept guiding this treatment is the

 

A.

Materiality concept

B.

Dual aspect concept

C.

Matching concept

D.

Money measurement concept

Correct answer is B

 

Dual Aspect Concept, also known as Duality Principle, is a fundamental convention of accounting that necessitates the recognition of all aspects of an accounting transaction. Dual aspect concept is the underlying basis for double entry accounting system.

503.

Which of the following items of expense involves actual cash payment?

A.

Discounts allowed

B.

Provision for depreciation

C.

Carriage outwards

D.

Allowance for doubtful debts

Correct answer is C

Carriage refers to the cost of transporting goods into a business from a supplier, as well as the cost of transporting goods from a business to its customers. Carriage outwards is the shipping and handling costs incurred by a company that is shipping goods to a customer.

504.

Bank reconciliation statement is prepared to reconcile the differences between

A.

Bank statement and credit transfers

B.

Cash book and bank transfers

C.

Bank statement and cash transfers

D.

Cash book and bank statement

Correct answer is D

bank reconciliation is used to compare your records to those of your bank, to see if there are any differences between these two sets of records for your cash transactions. The ending balance of your version of the cash records is known as the book balance, while the bank's version is called the bank balance.