WAEC Past Questions and Answers - Page 1233

6,161.

As a basis for assessing future usage, fixed assets are shown at

A.

Selling price

B.

Cost price

C.

Cost plus residual value

D.

Net book value

Correct answer is B

No explanation has been provided for this answer.

6,162.

Which of the following books of original entry is used to record all payments and receipt by cash or cheque?

A.

Sales day book

B.

Cash book

C.

Purchase day book

D.

General journal

Correct answer is B

No explanation has been provided for this answer.

6,163.

Which of the following is a prime cost?

A.

Royalty

B.

Salary

C.

Commission

D.

Discounts allowed

Correct answer is A

Prime cost is the direct cost incurred during production. Royalty is paid on production basis and on sales basis. If it is paid on production basis then it is considered direct expense (prime cost) and debited to Trading Account. 

6,164.

The amount for which a business is sold is that

A.

Goodwill

B.

Considerated fund

C.

Purchase

D.

Considerations

E.

Capital reserve

Correct answer is D

Consideration is a payment made by one party to another in exchange for the transfer of something of value. It must be of value to both parties entering into a transaction.