WAEC Accounting Past Questions & Answers - Page 345

1,721.

Prime cost is derived by adding i. cost of raw materials consumed ii. indirect expenses iii. direct labour iv. factory expenses v. work-in-progress vi. direct expenses

A.

I, ii and iv

B.

I, iii and vi

C.

Iv, v and vi

D.

Ii, iii and v

Correct answer is B

No explanation has been provided for this answer.

1,722.

Which of the following transactions will result in disagreement between the cash book and the bank statements?

A.

Selling of goods on credit to a customer

B.

Withdrawal of goods by the proprietor for his personel use

C.

Cheque paid directly into the bank account by a customer

D.

Omission of purchases received from a supplier on credit

Correct answer is C

A cheque payment is recorded in the cash book when the cheque is despatched. The bank only records such a cheque when it is paid by the bank, which may be several days later. Items such as interest may appear on the bank statement but are not recorded in the cash book as the business is unaware that they have arisen.

 

1,723.

The document from which entries are transferred to the purchases day book is the

A.

Waybill

B.

Credit note

C.

Receipt

D.

Invoice

Correct answer is D

No explanation has been provided for this answer.

1,724.

Subscriptions owed by members of a club is a/an

A.

Asset

B.

Liability

C.

Profit

D.

Surplus

Correct answer is A

No explanation has been provided for this answer.

1,725.

Net turnover is referred to as

A.

Purchases

B.

Assets

C.

Sales

D.

Profits

Correct answer is C

net turnover - is turnover before VAT and after trade discounts have been deducted.  A company may use net turnover to measure the total volume of sales