Waec Accounts - Principles of Accounts 1999 Past Questions and Answers

Question 26:

• WAEC 1999

Which of the following is not a revenue expenditure ?

A. Repair of generating set
B. Purchase of inventory
C. Extension of building
D. Paymen of subscription

Question 27:

• WAEC 1999

Dividend proposed by a company is shown in its Balance Sheet as

A. Current asset
B. Current liability
C. Long-term liability
D. Fixed asset

Question 28:

• WAEC 1999

The main classes of shares are

A. Preference shares and roghts issue
B. Fixed shares and current share
C. Ordinary shares and preference shares
D. Redeemable shares and Irredeemable shares

Question 29:

• WAEC 1999

Use the following information to answer the given question
\(\begin{array}{c|c} & N & & N \\ \hline \text{Ordinary Share Capital} & 140,000 & \text{Plant and Machinery} & 100,000 \\ \text{80% Preference share} & 63,000 & \text{Furniture} & 62,000 \\ \text{Retained earnings} & 40,000 & \text{Motor Van} & 75,000 \\ \text{10% Debentures} & 60,000 & Stock & 22,000 \\ Creditors & 10,000 & Debtors & 26,000 \\ \text{Accrued wages} & 12,000& Bank & 40,000 \\ & \overline{325,000} & & \overline{325,000}\end{array}\)
What is the current ratio?

A. 4 : 1
B. 3 : 1
C. 2 : 1
D. 1 : 1

Question 30:

• WAEC 1999

Use the following information to answer the given question
\(\begin{array}{c|c} & N & & N \\ \hline \text{Ordinary Share Capital} & 140,000 & \text{Plant and Machinery} & 100,000 \\ \text{80% Preference share} & 63,000 & \text{Furniture} & 62,000 \\ \text{Retained earnings} & 40,000 & \text{Motor Van} & 75,000 \\ \text{10% Debentures} & 60,000 & Stock & 22,000 \\ Creditors & 10,000 & Debtors & 26,000 \\ \text{Accrued wages} & 12,000& Bank & 40,000 \\ & \overline{325,000} & & \overline{325,000}\end{array}\)
The debt to equity ratio is

A. 1 : 4.05
B. 1 : 4
C. 1 : 3
D. 1 : 2.3