Waec Accounts - Principles of Accounts 1997 Past Questions and Answers

Question 26:

• WAEC 1997

A cash discount is a

A. Trading Account item
B. Profit and Loss Account item
C. Appropriation Account item
D. Receipts and Payments Account item
E. Balance Sheet item.

Question 27:

• WAEC 1997

Use the following information to answer the given question
Kudi Local Government Council incurred the following expenditure in 1995:
\(\begin{array}{c|c} & N \\ \hline \text{Payment of salaries} & 140,000 \\ \text{Purchase of drugs for dispensaries} & 80,000 \\ \text{Purchase of books for Library} & 30,000 \\ \text{Sinking of wells} & 70,000 \\ \text{Extension of Council offices} & 160,000 \end{array}\)
The amount of capital expenditure for 1995 was

A. N260,000
B. N230,000
C. N220,000
D. N160,00
E. N140,000

Question 28:

• WAEC 1997

Use the following information to answer this question
Kudi Local Government Council incurred the following expenditure in 1995:
N
Payment of salaries 140,000
Purchase of drugs for dispensaries 80,000
Purchase of books for Library 30,000
Sinking of wells 70,000
Extension of Council offices 160,000
The amount of revenue expenditure for 1995 was

A. N26,000
B. N230,00
C. N220,000
D. N160,000
E. 140,000

Question 29:

• WAEC 1997

An expense becomes an accrual because it

A. Is due for payment
B. Is a Profit and Loss Account item
C. Is a Trading Account item
D. Is to be paid within the next one year
E. Must appear in the balance sheet

Question 30:

• WAEC 1997

The amount for which a business is sold is known as

A. Goodwill
B. Capital reserve
C. Purchase consideration
D. Premium
E. Equity