Waec Accounts - Principles of Accounts 2005 Past Questions and Answers

Question 36:

• WAEC 2005

When both debit and credit entries of a transaction are shown in the cash book, it is described as

A. Contra entry
B. Reversal entry
C. Double entry
D. Single entry

Question 37:

• WAEC 2005

The correct order of liquidity is

A. Stock, debtors, prepayments and cash
B. Cash, payments, debtors and stock
C. Stock, cash, debtors and preyaments
D. Debtors, stock, cash and prepayments

Question 38:

• WAEC 2005

Which of the following ratios measure the ability of a firm to meet short-term obligations?

A. Net profit margin
B. Quick asset ratio
C. Turnover
D. Creditors ratio

Question 39:

• WAEC 2005

Which of the following is a capital reserve?

A. Profit and loss account balance
B. Share premium
C. Gross profit
D. Share discount

Question 40:

• WAEC 2005

When shares are sold at less than the nominal value, it means they are issued at

A. A premium
B. A loss
C. A discount
D. Par