WAEC Accounting Past Questions & Answers - Page 37

181.

The accounting principle of double entry states that

A.

debit the giver and credit the receiver

B.

assets must be equal to capital plus liabilities

C.

every debit entry must have a corresponding credit entry

D.

debit entries increase liabilities while credit entries increase

Correct answer is C

No explanation has been provided for this answer.

182.

Recurrent expenditure of a local government include

A.

Erection of market stalls

B.

Repayment of loans

C.

Purchase of office equipment

D.

Purchase of office stationery

Correct answer is D

No explanation has been provided for this answer.

183.

Accounts of fixed assets are kept in the

A.

Purchases ledger

B.

Private ledger

C.

Sales ledger

D.

General ledger

Correct answer is D

No explanation has been provided for this answer.

184.

The type of stock recorded in the trading account of a manufacturing business is

A.

Raw material

B.

Work-In progress

C.

Consumables

D.

Finished goods

Correct answer is A

No explanation has been provided for this answer.

185.

Company as a legal entity means that it

A.

must always have a company lawyer

B.

can sue and be sued

C.

must settle disputes among shareholders in court

D.

should prepare accounts approved by a lawyer

Correct answer is B

No explanation has been provided for this answer.