WAEC Accounting Past Questions & Answers - Page 298

1,486.

The amount for which a business is sold is that

A.

Goodwill

B.

Considerated fund

C.

Purchase

D.

Considerations

E.

Capital reserve

Correct answer is D

Consideration is a payment made by one party to another in exchange for the transfer of something of value. It must be of value to both parties entering into a transaction.

1,488.

The collection and organization of data is

A.

Accounting process

B.

Central processing

C.

Data processing

D.

Data manipulation

Correct answer is C

Data processing is the carrying out of operations on data, especially by a computer, to retrieve, transform, or classify information.

1,490.

Which of the following does not form part of shareholders fund?

A.

Ordinary shares

B.

Shares premium

C.

Profit

D.

Debenture

Correct answer is D

Debentures are a long-term security yielding a fixed rate of interest, issued by a company and secured against assets. It is a debt security issued by a company by a company to raise money. The holders are paid the amount lended with interest. They are not a source of equity financing.