WAEC Accounting Past Questions & Answers - Page 103

511.

Which of the following are impersonal accounts ?
I. Investment
II. Creditors
III. Premises
IV. Debtors
V. Salaries

A.

I, III and IV

B.

I, III and V

C.

II and IV

D.

III and V

Correct answer is D

Impersonal account; any account other than a personal account, being classified as either a real account, in which property is recorded, or a nominal account, in which income, expenses and capital are recorded.

 

512.

Every asset should have

A.

A non-monetary value

B.

Tangible and intangible qualities

C.

Monetary cost and future benefit

D.

An inadequate monetary value

Correct answer is B

Tangible assets are physical in nature that can be either long-term or short-term asset. Intangible assets are long-term assets that are not physical, but rather, intellectual property. Both tangible and intangible assets are recorded on the balance sheet.

 

513.

External users of accounting information include

A.

Employees

B.

Management

C.

Banks

D.

Directors

Correct answer is C

External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.