Try 10 free Accounting questions below, each with the answer explained. When you are ready, practise all 721 on a timed CBT screen.
The WASSCE (May/June) is the West African Examinations Council's final exam for secondary school students. Each subject has an objective (multiple-choice) paper and a theory or essay paper.
Tap an answer to check it and see the explanation.
An asset costing ₦240,000 is depreciated at 20% per annum on the reducing-balance method. Calculate the depreciation for the third year.
Answer: A. Each year, 20% of the opening book value is charged. Depreciation for year 3 = ₦30,720.
The cash book shows a debit balance of ₦218,000. Cheques of ₦39,000 have not been presented, a lodgement of ₦46,000 has not been credited, and bank charges of ₦5,000 are not yet in the cash book. What balance does the bank statement show?
Answer: D. Adjusted cash book balance = 218,000 − 5,000; add unpresented cheques and deduct the uncredited lodgement: ₦206,000.
Opening inventory ₦55,000, purchases ₦256,000, closing inventory ₦14,000 and sales ₦330,000. Calculate the gross profit.
Answer: B. Cost of sales = 55,000 + 256,000 − 14,000 = ₦297,000. Gross profit = 330,000 − 297,000 = ₦33,000.
An increase in discount received is recorded on which side of its ledger account?
Answer: D. Assets, expenses and drawings increase on the debit side; capital, liabilities and income increase on the credit side. So an increase in discount received goes on the credit side.
Returns inwards are also called
Answer: B. Goods returned by customers come back in.
An expense paid in advance is shown in the statement of financial position as a
Answer: C. Prepayments are owed back to the business as a benefit.
Which error does NOT stop the trial balance from agreeing?
Answer: B. If a transaction is left out completely, both sides are equally affected.
In a not-for-profit organisation, the equivalent of capital is the
Answer: D. Clubs and societies use an accumulated fund.
The main purpose of a trial balance is to
Answer: D. A trial balance tests whether debits equal credits.
The book of original entry for credit purchases is the
Answer: C. Credit purchases are first recorded in the purchases journal.
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Create a free accountQuestions in the MyGradePrep bank for each topic.
| Topic | Questions |
|---|---|
| Basic concepts | 125 |
| Depreciation | 122 |
| Final accounts | 122 |
| Ratios | 122 |
| Bank reconciliation | 61 |
| Partnership | 61 |
| Manufacturing accounts | 61 |
| Classification of accounts | 21 |
| Double entry | 15 |