Waec Accounts - Principles of Accounts Past Questions and Answers

Question 121:

• WAEC 1991

The capital sum which represents the difference between the assets and liabilities of a society or club is referred to as

A. Cosolidated fund
B. Recurrent fund
C. Accumulated fund
D. Working capital
E. General reserve

Question 122:

• WAEC 1991

Which of the following statements is not true of a non-profit making organization?

A. Income and expenditure account is prepared
B. Income and expenditure account excludes accruals and prepayments
C. Income and expenditure account excludes capital receipts and capital payments
D. Receipts and Payments account is a substitute for expenditure account

Question 123:

• WAEC 1991

A business which converts raw materials to finished goods prepares

A. Trading account and balance sheet
B. Profit and loss account and balane sheet
C. Balance sheet only
D. Trading profit and loss account and balance sheet
E. Manufacturing, trading, profit and loss account and balance sheet

Question 124:

• WAEC 1991

Payment of salaries to partners is

A. A charge to profit and loss account
B. A charge to trading account
C. An appropriation of divisible profit
D. An appropriation of interest on capital
E. An appropriation of interest on current account

Question 125:

• WAEC 1991

Accounting term used to describe the excess of current assets over current liabilities is

A. Shared capital
B. Working capital
C. Sucscribed capital
D. Reserve capital
E. Loan capital