WAEC Accounting Past Questions & Answers - Page 6

26.

The accounts maintained in the nominal ledger are

A.

Liabilities and capital

B.

Assets and liabilites

C.

Income and capital

D.

Expenses and income

Correct answer is D

Nominal accounts are accounts in which income and expenditure are recorded. It relates to gains, losses, income, expenses e.g discount accounts, sales accounts etc.

 

27.

Profit distributed to ordinary shareholders of a limited liability company is

A.

Dividend

B.

Interest

C.

Surplus

D.

Reserve

Correct answer is A

Dividend is the proportion of the company's profit which is distributable to the shareholders.

 

28.

The accounting concept which is the basis upon which assets of a business are valued is the

A.

Dual aspect concept

B.

Consistency concept

C.

Accrual concept

D.

Historical concept

Correct answer is D

Historical concept is also known as Cost concept. This cost implies that the accountant determines the value of an asset by reference to the cost of its acquisition and not by the value of returns which are expected to be earned.

 

29.

One of the internal users of accounting information is the

A.

Management

B.

Government

C.

Creditors

D.

Investors

Correct answer is A

The internal users are the primary users of accounting information and included the following:

- Owners (shareholders) of the company

- The management of the company

- The employees of the company

30.

Suppliers' personal account are found in the

A.

private ledger

B.

nominal ledger

C.

purchases ledger

D.

sales ledger

Correct answer is C

The purchases ledger contains accounts of creditors i.e it is the book for supplier personal account.