WAEC Accounting Past Questions & Answers - Page 144

716.

Mark-up on goods sent to branch offices are recorded in the books by creating

A.

Stock adjustment account debiting branch stock account

B.

Goods sent to branch account and debiting branch stock account

C.

Branch stock account and debiting stock adjustment account

D.

Cash account and crediting branch stock account

E.

Branch stock account and crediting defalcations account

Correct answer is A

No explanation has been provided for this answer.

717.

A share is under-subscribed when

A.

It is offered for sale at less than the nominal value

B.

It is offered for sale at nominal value

C.

The number of shares applied for is less than the offer

D.

It is offered for sale at more thn norminal value

E.

The number of shares applied for is more than the offer

Correct answer is C

No explanation has been provided for this answer.

718.

Shares are sold at less than nominal value. They are issued at a

A.

Profit

B.

Loss

C.

Discount

D.

Premium

E.

Par

Correct answer is C

No explanation has been provided for this answer.

719.

An excess of the value of the assets over the purchases consideration for acquisition of business is credited to

A.

General reserve

B.

Capital reserve

C.

Goodwill

D.

Current asset

E.

Share capital

Correct answer is B

No explanation has been provided for this answer.

720.

Payment for future services are

A.

Prepayment

B.

Deposit

C.

Accruals

D.

Investment

E.

Advances

Correct answer is E

No explanation has been provided for this answer.