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Accounts - Principles of Accounts 2018 WAEC Past Questions

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51

Use the following information to amswer the question that follows

Ordinary share----------------------------------70,000
Retained earnings-----------------------------31,142
Motor vehicle at cost--------------------------21,136
Accumulated dep. - motor vehicle---------7,109
Furniture and fittings at cost----------------1,334
Accumulated dep. fur & fitts at cost-------1,007
Stock----------------------------------------------32,200
Debtors-------------------------------------------49,380
Bank-----------------------------------------------15,953
Creditors------------------------------------------11,329

Equity holders fund is-------------

  • A. 112,471
  • B. 111,834
  • C. 101,142
  • D. 14,027
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52

Use the following information to amswer the question that follows

Ordinary share----------------------------------70,000
Retained earnings-----------------------------31,142
Motor vehicle at cost--------------------------21,136
Accumulated dep. - motor vehicle---------7,109
Furniture and fittings at cost----------------1,334
Accumulated dep. fur & fitts at cost-------1,007
Stock----------------------------------------------32,200
Debtors-------------------------------------------49,380
Bank-----------------------------------------------15,953
Creditors------------------------------------------11,329

Net book value of fixed assets is----

  • A. 22,480
  • B. 21,136
  • C. 14,354
  • D. 14,027
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53

The authority to incur expenditure in the public sector is-------------

  • A. warrant
  • B. vote
  • C. budget
  • D. voucher
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54

 ''Below the line'' item in public sector accounting means such an item is--------

  • A. not budgeted for in the current fiscal year
  • A. less than what is budgeted for
  • B. budgeted for in the current fiscal year
  • C. to be carried forward to the next fiscal year
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55

(a) Mention three disadvantages to a business that does not keep proper accounting records.

(b) Explain the following characteristics of accounting information
i. Relevance
ii. Comparability 
iii. Consistency
iv. Reliability

(c) State two limitations in the use of accounting information for business decision making.

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