Waec Accounts - Principles of Accounts Past Questions and Answers

Question 26:

• WAEC 1989

Which of the following may cause depreciation? i. wear and tear ii. obsolescence and passage of time iii. fluctuation

A. I, ii and iii
B. I and ii
C. I and iii
D. Ii and iii
E. Iii

Question 27:

• WAEC 1989

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the straight line method, the annual depreciation is

A. N3,100
B. N3,000
C. N2,900
D. N2,300
E. N2,000

Question 28:

• WAEC 1989

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400.Using the reducing balance method what will be the depreciation charge for year 2 at 20%? (ignoring residual value)

A. N3,000
B. N2,900
C. N2,400
D. N1,920
E. N1,536

Question 29:

• WAEC 1989

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the reducing balance method, what us the net book value at the end of the year 2? (ignoring residual value)

A. N10,480
B. N10,080
C. N9,680
D. N9,600
E. N7,680

Question 30:

• WAEC 1989

A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. The accumulated depreciation at the end of the year 3 using the straight line method is

A. N9,300
B. N9,000
C. N8,700
D. N6,900
E. N6,000