WAEC Accounting Past Questions & Answers - Page 301

1,501.

The accounting principle that states that insignificant expenditures are not to be taken into account is the

A.

Realization concept

B.

Materiality convention

C.

Marching concept

D.

Consistency convention

Correct answer is B

This accounting convention proposed that while accounting, only those transactions which have material impact on financial status of the organization will be considered and other transactions which have insignificant effect will be ignored. It gives relative importance to an item or event.

1,505.

The balance of the sales ledger control account represents

A.

Total sales

B.

Total credit sales

C.

Total creditors

D.

Total debtors

Correct answer is D

It represents the total of all credit sales. Also known as trade debtors.