WAEC Accounting Past Questions & Answers - Page 318

1,586.

The term used to denote the capital of a not-for-profit making organization is

A.

Annuity fund

B.

Nominal capital

C.

Circulating capital

D.

Accumulated fund

Correct answer is D

An accumulated fund is the capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures and there is a budgetary surplus.

1,587.

The equivalent of income and expenditure account in a trading concern is

A.

Trading account

B.

Profit and loss account

C.

Appropriation account

D.

Balance sheet

Correct answer is B

The income and expenditure account is an account prepared by non-trading concerns to ascertain surplus or deficit of income over expenditures for a particular period. Its equivalent is the profit and loss account . 

An income statement or profit and loss account is one of the financial statements of a company and shows the company's revenues and expenses during a particular period.

1,588.

Which of the following is not an input device?

A.

Card reader

B.

Paper top reader

C.

Alpha-numeric keyboard

D.

Line partnership

Correct answer is D

In computing, an input device is a piece of equipment used to provide data and control signals to an information processing system such as a computer or information appliance. Examples of input devices include keyboards, mouse, scanners, digital cameras, joysticks, and microphones.

1,589.

Rent accrued in 2009 was D140, in 2010, D900 was paid while D160 was outstanding. Rent for 2010 was

A.

D1,200

B.

D1,060

C.

D920

D.

D880

Correct answer is C

Accrued rent = 140

900 - 140 = 760

760 + 160 = 920

1,590.

The concept which establishes the rule for the periodic recognition of revenue as soon as it is capable of objective measurement is

A.

Going concern

B.

Entity

C.

Consistency

D.

Realization

Correct answer is D

The realization principle is the concept that revenue can only be recognized once the underlying goods or services associated with the revenue have been delivered or rendered, respectively. Thus, revenue can only be recognized after it has been earned.