Waec Accounts - Principles of Accounts Past Questions and Answers

Question 1321:

• WAEC 2016

In the purchase of a business, a buyer has paid more than the value of the net assets of the business. The excess payment is referred to as

A. Bonus
B. Goodwill
C. Net profit
D. Premium

Question 1322:

• WAEC 2016

Assets which are readily convertible into cash are termed as

A. Liquid assets
B. Fixed assets
C. Intangible assets
D. Tangible assets

Question 1323:

• WAEC 2016

A loan to a company under the company's seal is

A. Fixed deposit
B. Mortgage
C. Bond
D. Debenture

Question 1324:

• WAEC 2016

Debts that a firm is unable to recover are debited to bad debts account and credited to

A. Suppliers account
B. Sales account
C. Customers account
D. Cash account

Question 1325:

• WAEC 2016

When a fixed asset is disposed off, the accounting entries to write off the asset are Debit

A. Profit and loss account; credit asset disposal account
B. Asset disposal account; credit profit and loss account
C. Asset disposal account, credit asset account
D. Profit and loss account; credit provision for depreciation account