Waec Accounts - Principles of Accounts 2017 Past Questions and Answers

Question 41:

• WAEC 2017

A suspense account is used in the

A. Prevention of errors
B. Correction of errors
C. Detection of errors
D. Creation of errors

Question 42:

• WAEC 2017

A credit purchase of N200 from P. Osae was posted to the account of P. Osei. This is an error of

A. Principle
B. Commission
C. Omission
D. Original entry

Question 43:

• WAEC 2017

Discount allowed on goods invoiced at N100,000 was calculated at the rate of 20% instead of 10%. The error is corrected by debiting

A. Customer account with N20,000 crediting discount allowed with N20,000
B. Discount allowed with N10,000; crediting customer's account with N10,000
C. Customer's account with N10,000, crediting discount allowed with N10,000
D. Discount allowed with N20,000, crediting cash with N20,000

Question 44:

• WAEC 2017

The balance sheet equation shows

A. Current assets minus current liabilities
B. The difference between fixed assets and current liabilities
C. Assets and sources of financing them
D. Sources of funding owner's equity

Question 45:

• WAEC 2017

The effect on profit when the closing stock is understated is

A. Increase in profit
B. Decrease in profit
C. No change in profit
D. Appropriation of profit