Waec Accounts - Principles of Accounts 2010 Past Questions and Answers

Question 26:

• WAEC 2010

Use the following information to answer given question
\(\begin{array}{c|c} & ₦ \\ \hline \text{Opening stock of raw materials} & 24,750\\ \text{Purchases of raw materials} & 129,640\\ \text{Carriage on raw materials} & 10,000\\ \text{Closing stock of raw materials} & 45,000 \\ \text{Factory supervisor's salary} & 30,000\\ \text{Wages of factory hands} & 50,000 \\ \text{Royalties paid}& 18,000\\ \text{Insurance of factories} & 62,000\\ \text{Work-in-progress(opening)} & 23,000 \\ \text{Raw material returned} & 12,200\end{array}\)
The total overhead expenses is

A. ₦142,000
B. ₦151,000
C. ₦110,000
D. ₦92,000

Question 27:

• WAEC 2010

The accounting principle that states that insignificant expenditures are not to be taken into account is the

A. Realization concept
B. Materiality convention
C. Marching concept
D. Consistency convention

Question 28:

• WAEC 2010

The realization concept states that

A. Revenue is recognized as being earned when ownership of goods passes to the customer
B. Revenue and profit should not be anticipated
C. Similar way from one accounting period to another
D. Transaction must be expressed in monetary term

Question 29:

• WAEC 2010

Where fixed capitals are maintained, partners' drawings are transferred to the

A. Credit of capital account
B. Debit of capital accounts
C. Credit of partners's current accounts
D. Debit of partners' currents account

Question 30:

• WAEC 2010

The method that provides a reliable check upon cash and stock at the branch and discloses the gross profit in the account is

A. Cost plus percentage
B. Cost price
C. Average cost
D. Selling price