Waec Accounts - Principles of Accounts 1991 Past Questions and Answers

Question 26:

• WAEC 1991

Which of the following statements is not true of a non-profit making organization?

A. Income and expenditure account is prepared
B. Income and expenditure account excludes accruals and prepayments
C. Income and expenditure account excludes capital receipts and capital payments
D. Receipts and Payments account is a substitute for expenditure account

Question 27:

• WAEC 1991

A business which converts raw materials to finished goods prepares

A. Trading account and balance sheet
B. Profit and loss account and balane sheet
C. Balance sheet only
D. Trading profit and loss account and balance sheet
E. Manufacturing, trading, profit and loss account and balance sheet

Question 28:

• WAEC 1991

Payment of salaries to partners is

A. A charge to profit and loss account
B. A charge to trading account
C. An appropriation of divisible profit
D. An appropriation of interest on capital
E. An appropriation of interest on current account

Question 29:

• WAEC 1991

Accounting term used to describe the excess of current assets over current liabilities is

A. Shared capital
B. Working capital
C. Sucscribed capital
D. Reserve capital
E. Loan capital

Question 30:

• WAEC 1991

A delivery van was bought on credit. The transaction would be entered by the customer first in the

A. Purchases day book
B. Sales day book
C. Returns inwards book
D. Returns outwards book
E. Journal proper