WAEC Accounting Past Questions & Answers - Page 299

1,491.

When shares are sold 'at par' it means they are issued at

A.

The market value

B.

The nominal value

C.

A discount

D.

A premium

Correct answer is B

When shares are issued at a price equal to their face value it is termed as shares issued at par. Par value is also known as nominal value or face value.

1,492.

Which of the following reserves is not used for bonus shares?

A.

Revolution reserve

B.

Share premium

C.

Capital redemption reserve fund

D.

General reserve

Correct answer is C

Capital redemption reserves fund is a part of a company's reserves and capital from money invested in shares that is not allowed to be given to shareholders in the form of dividends.

1,493.

A financial plan of action expressed in monetary terms is a/an

A.

Warrant

B.

Budget

C.

Imprest

D.

Consolidated fund

Correct answer is B

A budget is an estimation of revenue and expenses over a specified future period of time. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. Budgeting is simply balancing your expenses with your income.

1,494.

The document prepared for the disbursement of government fund is

A.

An invoice

B.

A receipt

C.

A payment voucher

D.

A bill

Correct answer is B

No explanation has been provided for this answer.

1,495.

The accounting treatment when goods are sent to branch at a cost is, debit branch stock account and credit

A.

Branch stock adjustment account

B.

Goods sent to branch account

C.

Branch debtors account

D.

Branch profit and loss account

Correct answer is B

When goods are sent to the branch office at cost we debit branch stock account and credit goods sent to branch account (at cost price)