WAEC Accounting Past Questions & Answers - Page 234

1,167.

Closing stock was overstated. The effect is that

A.

Amount of goods available was understated

B.

Cost of goods sold was overstated

C.

Amount of sales was understated

D.

Gross profit was overstated

Correct answer is D

No explanation has been provided for this answer.

1,168.

When goods are purchased on account, the accounting entries are

A.

Debit purchases account, credit supplier's account

B.

Credit purchases account, debit supplier's account

C.

Credit bank account, debit purchases account

D.

Debit bank account, debit purchases account

Correct answer is A

No explanation has been provided for this answer.

1,169.

The ratio which measures the solvency of a firm is the

A.

Quick ratio

B.

Gross profit over sales ratio

C.

Stock turnover ratio

D.

Debtors turnover ratio

Correct answer is A

No explanation has been provided for this answer.

1,170.

A partner who has full power of participating in the conduct of a partnership business is a

A.

General partner

B.

Limited partner

C.

Sleeping partner

D.

Nominal partner

Correct answer is A

No explanation has been provided for this answer.