WAEC Accounting Past Questions & Answers - Page 322

1,606.

The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is

A.

Business entity

B.

Materiality

C.

Dual aspect

D.

Realization

Correct answer is B

The materiality principle states that an accounting standard can be ignored if the net impact of doing so has such a small impact on the financial statements that a reader of the financial statements would not be misled.

1,607.

An example of input devices of a computer is

A.

An optical character reader

B.

A graph plotter

C.

A visual display unit

D.

A printer

Correct answer is A

Example of input devices are

  • Keyboard.
  •  Mouse,
  • Joystick
  •  Light Pen,
  • Track Ball, Scanner, Digitizer, Microphone, 
  • Magnetic Ink Card Reader(MICR)
  • Optical Character Reader(OCR)
  •  Bar Code Reader
  • Optical Mark Reader(OMR)

 

1,608.

The primary classification of government expenditure is based on

A.

Programs

B.

Fund

C.

Activity

D.

Project

Correct answer is B

No explanation has been provided for this answer.

1,609.

When the purchase consideration exceeds the value of business, the difference is

A.

Profit

B.

Discount

C.

Goodwill

D.

Reserve

Correct answer is C

Goodwill is an intangible asset associated with the purchase of one company by another. It  is a company's value that exceeds its assets minus its liabilities.

1,610.

The accounting ratio used to measure the average number of days for which suppliers remain unpaid is

A.

Stock turnover

B.

Creditor's payment period

C.

Debtors collection period

D.

Return on capital employed

Correct answer is B

The Creditor (or payables) days number is a similar ratio to debtor days and it gives an insight into whether a business is taking full advantage of trade credit available to it. Creditor days estimates the average time it takes a business to settle its debts with trade suppliers.