Closing stock appears in the:

trading account and the balance sheet

What is an error of omission?

a transaction left out of the books altogether

two separate errors of equal size on opposite sides, cancelling each other out

an amount posted to the wrong CLASS of account, such as a machine treated as a repair

a correct amount posted to the wrong account of the RIGHT type, such as one customer instead of another

What is the accumulated fund?

the equivalent of capital in a club or society

a summary of the cash book, showing money in and out with no adjustments

the excess of income over expenditure, the equivalent of a profit

the equivalent of a profit and loss account, prepared on the accruals basis

What is the aim of a professional association?

maintaining standards and representing the interests of one occupation

trading for the benefit of members, returning surplus in proportion to dealings

providing a service the state has decided should not be left to the market

applying donated funds to a public benefit rather than to its members

How is a prepaid expense treated?

an expense paid in advance, deducted from the charge and shown as a current asset

income earned but not yet received, added to the income and shown as a current asset

stock unsold at the year end, deducted from the cost of goods sold and shown as a current asset

a debt known to be irrecoverable, charged to profit and removed from debtors entirely

What is the current account?

the account recording a partner's share of profit and drawings, leaving capital undisturbed

a charge on each partner for money taken out during the year

the value of a firm's reputation and connections, dealt with when a partner joins or leaves

the written agreement setting out how profits, salaries and interest are to be shared

West African Examinations Council

WASSCE Accounting · Paper 1 — Objective

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

40 of 494 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

An asset costing ₦350,000 has a residual value of ₦110,000 and a useful life of 4 years. Calculate the annual depreciation charge under the straight-line method, in thousands of naira.

An asset costing ₦350,000 has a residual value of ₦110,000 and a useful life of 4 years. Calculate the annual depreciation charge under the straight-line method, in thousands of naira.

2. In a bank reconciliation, which is fees the bank deducts, appearing on the statement before they reach the cash book?

3. A business has sales of ₦500,000 and a cost of goods sold of ₦270,000. What is the gross profit as a percentage of sales?

4. Closing stock appears in the:

5. What is an error of omission?

6. Which body exists for applying donated funds to a public benefit rather than to its members?

7. A business has sales of ₦880,000 and a cost of goods sold of ₦660,000. What is the gross profit as a percentage of sales?

8. Which term means a share carrying a fixed dividend paid before ordinary shareholders, usually without a vote?

9. In a trial balance, which is checking the arithmetic accuracy of the ledger before final accounts are drawn?

10. An asset costing ₦270,000 has a residual value of ₦100,000 and a useful life of 10 years. Calculate the annual depreciation charge under the straight-line method, in thousands of naira.

11. Which book of original entry records credit sales of goods the business normally deals in?

12. An asset costing ₦400,000 has a residual value of ₦140,000 and a useful life of 5 years. Calculate the annual depreciation charge under the straight-line method, in thousands of naira.

13. An asset costing ₦150,000 has a residual value of ₦140,000 and a useful life of 10 years. Calculate the annual depreciation charge under the straight-line method, in thousands of naira.

14. What is the accumulated fund?

15. An asset costing ₦200,000 has a residual value of ₦80,000 and a useful life of 10 years. Calculate the annual depreciation charge under the straight-line method, in thousands of naira.

16. What is the aim of a professional association?

17. Which term means the part of the authorised capital actually offered to and taken by shareholders?

18. How is a prepaid expense treated?

19. A business has sales of ₦400,000 and a cost of goods sold of ₦80,000. What is the gross profit as a percentage of sales?

20. What is the current account?

21. What is the receipts and payments account?

22. In company accounts, what is authorised share capital?

23. A business has sales of ₦800,000 and a cost of goods sold of ₦520,000. What is the gross profit as a percentage of sales?

24. Which adjustment is described by stock unsold at the year end, deducted from the cost of goods sold and shown as a current asset?

25. Which adjustment is described by income earned but not yet received, added to the income and shown as a current asset?

26. A business has sales of ₦300,000 and a cost of goods sold of ₦60,000. What is the gross profit as a percentage of sales?

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

28. The rule 'debit what comes in, credit what goes out' applies to:

29. A business has sales of ₦400,000 and a cost of goods sold of ₦360,000. What is the gross profit as a percentage of sales?

30. A business has sales of ₦600,000 and a cost of goods sold of ₦360,000. What is the gross profit as a percentage of sales?

31. An asset costing ₦840,000 has a residual value of ₦180,000 and a useful life of 5 years. Calculate the annual depreciation charge under the straight-line method, in thousands of naira.

32. An asset costing ₦670,000 has a residual value of ₦110,000 and a useful life of 2 years. Calculate the annual depreciation charge under the straight-line method, in thousands of naira.

33. What does the cash flow statement show?

34. Which rule of double entry governs real accounts, which record assets the business owns?

35. An asset costing ₦280,000 has a residual value of ₦160,000 and a useful life of 6 years. Calculate the annual depreciation charge under the straight-line method, in thousands of naira.

36. What is direct labour?

37. Which book of original entry records receipts and payments of cash and through the bank?

38. What is the cost of production?

39. A business has sales of ₦400,000 and a cost of goods sold of ₦240,000. What is the gross profit as a percentage of sales?

40. Which statement shows the cost of producing goods, ending in the cost of finished output?

Reading these is not the same as sitting them.