Waec Accounts - Principles of Accounts 2006 Past Questions and Answers

Question 26:

• WAEC 2006

Use the following information to answer the given question
\(\begin{array}{c|c} & Le \\ \hline \text{Cash in hand} & 15,000\\ \text{Balances as at 1st January, 2005:} & \\ \text{Subscriptions in arrears} & 6,000\\ \text{Subscription in advance} & 2,500\\ \text{Subscriptions received} & 18,000\\ \text{Expense for the year} & 6,500\\ \text{Balances as at 31st December, 2005:} & \\ \text{Subscriptions in arrears} & 3,000 \\ \text{Subscriptions in advance} & 1,500\end{array}\)
The excess of income over expenditure for the year was

A. Le 16,500
B. Le 11,500
C. Le 9,500
D. Le 6,500

Question 27:

• WAEC 2006

Revenue is recognized in the profit and loss account as soon as a

A. Debtor pays what is due from him
B. Sale of goods takes place and money is received
C. Sale of goods takes place whether or not money is received
D. Sales of a fixed asset takes place

Question 28:

• WAEC 2006

"A business unit is assumed to operate into foreseeable future and earn reasonable net income". This statement is emphasized by the concept of

A. Business entity
B. Going concern
C. Realization
D. Accrual

Question 29:

• WAEC 2006

Which of the following is not used in solving problems of incomplete records?

A. Control accounts
B. Statement of affairs
C. Cash book
D. Balance sheet

Question 30:

• WAEC 2006

In a system of incomplete records, the opening capital is determined by preparing

A. Statement of affairs
B. Balance sheet
C. Cash book
D. Trial balance