WAEC Accounting Past Questions & Answers - Page 324

1,616.

When an asset is sold, the entries for the accumulated depreciation are; debit

A.

Assets disposal account; credit provision for depreciation account

B.

Provision for depreciation account; credit asset disposal account

C.

Fixed asset account; credit asset disposal account

D.

Asset disposal account; credit fixed asset account

Correct answer is B

Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.

1,617.

The sum of direct cost in a manufacturing account is

A.

Production cost

B.

Prime cost

C.

Total cost

D.

Finance cost

Correct answer is B

Prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs.

1,618.

Which of the following is not a purpose for which share premium may be utilized?

A.

Issuing fully oaid bonus share

B.

Writing off preliminary expenses

C.

Settling salesman commission

D.

Providing for redeemable preference

Correct answer is C

No explanation has been provided for this answer.

1,619.

The first calculating machine in data processing was

A.

Abacus

B.

Pascal

C.

Punched cards

D.

Digital

Correct answer is A

No explanation has been provided for this answer.

1,620.

The going concern concept assumes that

A.

Every transaction is represented by a debit and credit entry

B.

The currency much not change

C.

The firm is a legal entity

D.

The business will continue to operate indefinitely

Correct answer is D

No explanation has been provided for this answer.