WAEC Accounting Past Questions & Answers - Page 342

1,706.

The accounting concept underlying the treatment of personal expenses of the business owner as drawing is

A.

Periodicity

B.

Accrual

C.

Entity

D.

Materiality

Correct answer is C

The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.

1,708.

Which of the following items is not contained in the Receipts and Payments Account?

A.

Subscription paid in advance

B.

Stock paid for in advance

C.

Outstanding wages and salaries

D.

Donations

Correct answer is B

Receipts and payments account are used by non profit making organization, It is a summarized form of Cash Book. All receipts are recorded on its left-hand (Debit) side and all payments are recorded on its right-hand (credit) side. receipts & payments accounts show only the cash and bank transactions in that accounting period. it doesnt include stock paid for in advance.

1,709.

Which of the following is not an administrative expenses in a manufacturing organization?

A.

Discounts allowed

B.

Office electricity

C.

Stationery

D.

Insurance

Correct answer is C

Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales. stationaries aren't administrative expense.