Waec Accounts - Principles of Accounts 2000 Past Questions and Answers

Question 6:

• WAEC 2000

In a bonus issue of one new share for every four held, a holder of 100,000 shares will get additional shares of

A. 50,000
B. 25,000
C. 20,000
D. 10,000

Question 7:

• WAEC 2000

A partner who has full power of participating in the conduct of a partnership business is a

A. General partner
B. Limited partner
C. Sleeping partner
D. Nominal partner

Question 8:

• WAEC 2000

The ratio which measures the solvency of a firm is the

A. Quick ratio
B. Gross profit over sales ratio
C. Stock turnover ratio
D. Debtors turnover ratio

Question 9:

• WAEC 2000

When goods are purchased on account, the accounting entries are

A. Debit purchases account, credit supplier's account
B. Credit purchases account, debit supplier's account
C. Credit bank account, debit purchases account
D. Debit bank account, debit purchases account

Question 10:

• WAEC 2000

Closing stock was overstated. The effect is that

A. Amount of goods available was understated
B. Cost of goods sold was overstated
C. Amount of sales was understated
D. Gross profit was overstated