WAEC Accounting Past Questions & Answers - Page 42

206.

Working capital is the excess of

A.

Current assets over fixed assets

B.

Current liabilities over current assets

C.

Fixed assets over currents liabilities

D.

Current assests over current

Correct answer is D

No explanation has been provided for this answer.

207.

Goodwill may be brought into the books when

A.

No partner retires

B.

Assets are more than liabilities

C.

Profit for the period is high

D.

A new partner is admitted

Correct answer is D

No explanation has been provided for this answer.

208.

Interest on partners drawings are debited in the

A.

Partners current accounts and credited to the appropriation account

B.

Drawings account and credited to the profit and loss account

C.

Profit and loss account and credited to the partners current account

D.

Profit and loss account and credited to the partners' drawings account 

Correct answer is A

No explanation has been provided for this answer.

209.

Where there is no agreement between the partners, the Partnership Act states that 

A.

5% interest is to be paid on capital

B.

Profit and losses are to be shared in proportion to their capital

C.

50% interest is to be charged on drawings

D.

No salary is to be paid to partners

Correct answer is B

No explanation has been provided for this answer.

210.

In a not-for-profit making organization, the Receipts and Payments Accounts is the equivalent of

A.

Profit and Loss Accounts

B.

Income and expenditure Accounts

C.

Cash Book

D.

Balance Sheet

Correct answer is C

No explanation has been provided for this answer.