WAEC Accounts (Principles of Accounts) questions

297 questions with answers and explanations. Tap an option to check yourself.

1. Question 121· Depreciation of non-current assets· WAEC

   Depreciation is a

   • Aliability
   • Bcash receipt
   • Cnon-cash expense
   • Drevenue

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2. Question 122· Depreciation of non-current assets· WAEC

   Depreciation is

   • Athe market value of an asset
   • Bthe allocation of the cost of a non-current asset over its useful life
   • Ccash set aside for replacement
   • Da current liability

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3. Question 123· Depreciation of non-current assets· WAEC

   A machine costing ₦50,000 with a residual value of ₦5,000 and a life of 5 years is depreciated by the straight-line method. Annual depreciation is

   • A₦9,000
   • B₦10,000
   • C₦11,000
   • D₦5,000

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4. Question 124· Depreciation of non-current assets· WAEC

   An asset with a book value of ₦80,000 is sold for ₦95,000. The result is

   • Aa loss of ₦80,000
   • Ba loss of ₦15,000
   • Ca profit of ₦95,000
   • Da profit on disposal of ₦15,000

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5. Question 125· Depreciation of non-current assets· WAEC

   A van costing ₦100,000 is depreciated at 20% a year on the reducing balance. Depreciation in year 2 is

   • A₦40,000
   • B₦20,000
   • C₦16,000
   • D₦80,000

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6. Question 126· Depreciation of non-current assets· WAEC

   Land is usually not depreciated because it

   • Adoes not normally wear out
   • Bis never sold
   • Chas no value
   • Dis a current asset

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7. Question 127· Depreciation of non-current assets· WAEC

   An asset whose value falls mainly because a newer model makes it out of date suffers from

   • Aappreciation
   • Bwear and tear
   • Cdepletion
   • Dobsolescence

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8. Question 128· Double entry and the ledger· WAEC

   Machinery bought on credit from Abiola Ltd is recorded by

   • Adebiting purchases and crediting cash
   • Bdebiting machinery and crediting Abiola Ltd
   • Cdebiting Abiola Ltd and crediting machinery
   • Ddebiting machinery and crediting bank

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9. Question 129· Double entry and the ledger· WAEC

   Cash sales of ₦8,000 are recorded by

   • Adebiting purchases and crediting cash
   • Bdebiting sales and crediting cash
   • Cdebiting cash and crediting sales
   • Ddebiting debtors and crediting sales

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10. Question 130· Double entry and the ledger· WAEC

    Electricity bill settled in cash is recorded by

    • Acrediting electricity and debiting bank
    • Bdebiting cash and crediting electricity
    • Cdebiting capital and crediting cash
    • Ddebiting electricity account and crediting cash account

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11. Question 131· Double entry and the ledger· WAEC

    Which account normally has a credit balance?

    • Amachinery
    • Bdrawings
    • Cpurchases
    • Dcapital

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12. Question 132· Double entry and the ledger· WAEC

    Goods taken by the owner for personal use are

    • Acredited to capital
    • Bdebited to purchases and credited to drawings
    • Cdebited to sales
    • Ddebited to drawings and credited to purchases

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13. Question 133· Double entry and the ledger· WAEC

    Goods for resale bought on credit from Musa are recorded by

    • Adebiting Musa's account and crediting purchases account
    • Bdebiting purchases account and crediting Musa's account
    • Cdebiting cash account and crediting purchases account
    • Ddebiting purchases account and crediting cash account

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14. Question 134· Double entry and the ledger· WAEC

    Commission received is recorded on the

    • Acredit side of the cash account
    • Bdebit side of the commission received account
    • Cdebit side of the capital account
    • Dcredit side of the commission received account

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15. Question 135· Double entry and the ledger· WAEC

    Rent paid by cheque is recorded by

    • Adebiting rent account and crediting bank account
    • Bdebiting bank account and crediting rent account
    • Cdebiting rent account and crediting cash account
    • Ddebiting capital account and crediting rent account

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16. Question 136· Double entry and the ledger· WAEC

    Discount allowed to a customer is recorded by

    • Acrediting discount allowed and debiting the customer
    • Bdebiting discount allowed and crediting the customer's account
    • Cdebiting the customer and crediting cash
    • Ddebiting sales and crediting discount allowed

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17. Question 137· Double entry and the ledger· WAEC

    The owner takes goods costing ₦5,000 for personal use. The entries are

    • Adebit sales, credit drawings
    • Bdebit purchases, credit drawings
    • Cdebit drawings, credit purchases
    • Ddebit capital, credit sales

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18. Question 138· Double entry and the ledger· WAEC

    Goods returned by Musa, a customer, are recorded by

    • Adebiting Musa and crediting returns inwards
    • Bdebiting returns inwards and crediting Musa
    • Cdebiting returns outwards and crediting Musa
    • Ddebiting sales and crediting cash

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19. Question 139· Double entry and the ledger· WAEC

    A debit balance on a customer's account means the customer

    • Aowes the business
    • Bis owed by the business
    • Chas paid in advance
    • Dhas returned goods

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20. Question 140· Double entry and the ledger· WAEC

    A motor van bought on credit from Adeyemi Motors is entered as

    • Adebit motor van account, credit Adeyemi Motors account
    • Bdebit purchases account, credit Adeyemi Motors account
    • Cdebit Adeyemi Motors account, credit motor van account
    • Ddebit motor van account, credit bank account

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    Explanation and discussion