Waec Accounts - Principles of Accounts 2007 Past Questions and Answers

Question 36:

• WAEC 2007

Which of the following formulae is used to calculate stock turnover rate?

A. \(\frac{sales}{\text{average stock}}\)
B. \(\frac{\text{cost f sales}}{\text{average stock}}\)
C. \(\frac{\text{cost of sales}{\text{opening stock}}\)
D. \(\frac{\text{cost of sales}}{\text{average stock}}\)

Question 37:

• WAEC 2007

Which of the following bases of accounting does not make allowance for depreciation?

A. Cash basis
B. Accrual basis
C. Matching basis
D. Commitment basis

Question 38:

• WAEC 2007

Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 \\ Debtor & 10,000\\ Cash & 10,000\\ Creditors & 20,000 \end{array}\)
Total assets is

A. ₦240,000
B. ₦220,000
C. ₦200,000
D. ₦180,000

Question 39:

• WAEC 2007

Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 \\ Debtor & 10,000\\ Cash & 10,000\\ Creditors & 20,000 \end{array}\)
Current ratio is

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

Question 40:

• WAEC 2007

Use the following to answer the given question,
\(\begin{array}{c|c} & ₦ \\ \hline Premises & 100,000 \\ Plant & 50,000\\ Fixtures & 30,000\\ Stock & 2,000 \\ Debtor & 10,000\\ Cash & 10,000\\ Creditors & 20,000 \end{array}\)
Quick ratio is

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