Closing stock appears in the:

trading account and the balance sheet

Depreciation is best described as

the allocation of the cost of an asset over its useful life

a cash payment to replace an asset

a fall in the market price of an asset

Bank charges appearing on the bank statement but not in the cash book should be

deducted from the bank statement

In the absence of a partnership agreement, profits and losses are shared

by the senior partner's decision

A credit note is issued by a seller when

goods are returned by the customer

The sales ledger control account is used mainly to:

check the arithmetical accuracy of the sales ledger

The purchase of a motor vehicle for cash is recorded as:

debit motor vehicle, credit cash

debit cash, credit motor vehicle

debit motor vehicle, credit capital

Which of the following errors will NOT be revealed by a trial balance?

A transaction omitted entirely from the books

A single entry posted to one side only

A debit posted as a credit of a different amount

An addition error in one ledger account

The main purpose of a trial balance is to

check the arithmetical accuracy of the ledger

West African Examinations Council

WASSCE Accounting · Paper 1 — Objective

Multiple-choice. This is the paper the CBT simulator practises.

50 exam-style questions, written to the West African Examinations Council format and free to read. The answers are here too — what they do not tell you is how many you would get right with a clock running.

Sit this paper timed All WASSCE Accounting papers

1. Closing stock appears in the:

1. Closing stock appears in the:

2. In the absence of a partnership agreement, profits are shared:

3. Depreciation is best described as

4. A balance sheet shows the financial position of a business

5. A business has current assets of ₦600 000 and current liabilities of ₦200 000. Its current ratio is

6. Bank charges appearing on the bank statement but not in the cash book should be

7. Credit sales are first recorded in the:

8. Under the reducing balance method, the depreciation charge each year

9. In the absence of a partnership agreement, profits and losses are shared

10. Wages owing at the year end are treated as

11. A credit note is issued by a seller when

12. A machine costing ₦500 000 has a scrap value of ₦50 000 and a useful life of 5 years. Using the straight line method, the annual depreciation is

13. A cheque issued but not yet presented at the bank is called:

14. The sales ledger control account is used mainly to:

15. The purchase of a motor vehicle for cash is recorded as:

16. Which of the following errors will NOT be revealed by a trial balance?

17. Interest on a partner's drawings is

18. Providing for a doubtful debt before it is confirmed illustrates the concept of:

19. Under the straight line method, the annual depreciation charge is:

20. The main purpose of a trial balance is to

21. A debt that is certainly irrecoverable and written off is charged to

22. The book used to record the return of goods to a supplier is the:

23. A trader had sales of ₦800 000, opening stock ₦100 000, purchases ₦500 000 and closing stock ₦150 000. The gross profit is

24. The source document issued by a seller for goods sold on credit is a

25. Working capital is calculated as

26. Rent paid in advance at the end of the year is shown in the balance sheet as

27. A business has assets of ₦850 000 and liabilities of ₦320 000. Its capital is

28. When a business buys goods on credit from a supplier, the entries are:

29. Under the imprest system, the petty cashier is reimbursed with

30. The principle that every transaction affects at least two accounts is called

31. A suspense account is opened when

32. Prime cost consists of

33. The accounting equation is best expressed as

34. The account that determines gross profit is the

35. The cash book is unusual because it serves as

36. In the accounts of a club, the equivalent of a sole trader's capital is the

37. Credit purchases are first recorded in the

38. Prepaid rent at the year end is treated as:

39. The accounting equation is:

40. Recording the purchase of a machine in the purchases account is an error of:

41. The concept that a business is separate from its owner is the:

42. The equivalent of a profit and loss account for a social club is the:

43. Which error will NOT be revealed by a trial balance?

44. A cheque issued but not yet presented to the bank for payment is described as

45. Capital that a company is authorised by its memorandum to raise is called

46. Gross profit is calculated as:

47. A debenture holder is best described as

48. An entry that appears on both sides of the cash book, such as cash paid into the bank, is called

49. Recording the purchase of a motor vehicle in the motor expenses account is an error of

50. An asset costing 500,000 naira with a residual value of 50,000 naira and a useful life of 5 years has an annual straight line charge of:

Reading these is not the same as sitting them.