WAEC Accounting Past Questions & Answers - Page 241

1,201.
1,202.

The depreciation method that allocates higher value to the use of an asset in its earlier years is

A.

Diminishing balance method

B.

Revaluation method

C.

Fixed instalment method

D.

Straight line method

Correct answer is A

No explanation has been provided for this answer.

1,203.

What is the effect on a firm for making a payment of N10,000 to creditor? its liabilities

A.

Decrease and its assets decrease

B.

Increase and its assets decrease

C.

Decrease and its assets increase

D.

Increase and its assets increase

Correct answer is D

No explanation has been provided for this answer.

1,204.

A business firm incurs labour cost in installing machinery. This should be treated as

A.

Salaries account

B.

Machinery account

C.

Debtors account

D.

Creditors account

Correct answer is B

No explanation has been provided for this answer.

1,205.

Which of the following is not correct?

A.

Increases in asset accounts are entered on the debit side

B.

Decreases in assets accounts are entered on the credit side

C.

Increases in liability accounts are entered on the credit side

D.

Decreases in liability accounts are entered on the credit side

Correct answer is D

No explanation has been provided for this answer.