WAEC Past Questions and Answers - Page 866

4,326.

Goods returned to the supplier is recorded in the accounts as: debit

A.

Sales Returns Account; credit Suppliers' Account

B.

Purchases Returns Account; credit Supplier's Account

C.

Supplier's Account; credit Purchases Returns Account

D.

Supplier's Account; credit Purchases Account

Correct answer is C

No explanation has been provided for this answer.

4,327.

Where partners maintain a fluctuating capital account, partners' share of profit is credited to

A.

Capital account

B.

Profit and loss appropriate account

C.

Current account

D.

Profit and loss account

Correct answer is A

No explanation has been provided for this answer.

4,328.

A limitation of the money measurement concept is that

A.

it results in inaccurate financial statements

B.

financial statement is not easily understood

C.

important non-monetary activities are not reported

D.

the reports are not comparable to that of other businesses

Correct answer is C

No explanation has been provided for this answer.

4,329.

An amount set aside to meet expenses whose value is not certain is a 

A.

Reserve

B.

Liability

C.

Provision

D.

Prepayment

Correct answer is C

No explanation has been provided for this answer.

4,330.

A reserve is an amount 

A.

Set aside from profit for an unknown liability

B.

Of loss from trading activities

C.

Of profit from trading activities

D.

Set aside from profit for a specific purpose

Correct answer is D

No explanation has been provided for this answer.