WAEC Accounting Past Questions & Answers - Page 74

367.

The quality of output information depends on the

A.

Quality of input data

B.

Time of processing

C.

Speed of processing

D.

Quantity of output service

Correct answer is A

The output is an instant reaction to the input. The value derived from output depends on the quality of input and your process for converting raw ideas and feedback into effective solutions.

368.

Which of the following is a spreadsheet application?

A.

Excel

B.

Word

C.

Internet

D.

Windows

Correct answer is A

A spreadsheet is a sheet of paper that shows accounting or other data in rows and columns; a spreadsheet is also a computer application program that simulates a physical spreadsheet by capturing, displaying, and manipulating data arranged in rows and columns. Excel is an example of a spread sheet application

 

369.

Which of the following is found on the credit side of a partnership's appropriation of profit account?

A.

Interest on capital

B.

Interest on drawings

C.

Share of profit

D.

Drawings

Correct answer is B

Interest on drawings is an expense to the partner, and hence it is credited to the profit and loss appropriation account

370.

Which of the following relates to cash basis of accounting?

A.

Accruals and prepayments are considered

B.

Debtors and creditors are recorded

C.

Fixed assets are written off in the year of purchase

D.

Profits are maximized

Correct answer is A

The cash basis is a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made. Thus, you record revenue only when a customer pays for a billed product or service, and you record a payable only when it is paid by the company.