WAEC Accounting Past Questions & Answers - Page 79

393.

Goods stolen at the branch is debited to

A.

Defalcations account

B.

Branch stock account

C.

Branch adjustment account

D.

Branch debtors account

Correct answer is A

Defalcation predominantly refers to the theft, misuse or misappropriation of money or funds held by an official trustee, or other senior-level fiduciary. In this regard a defalcation account will be opened to record the stolen goods.

394.

Which of the following expenses is allocated according to the floor area?

A.

Wages and Salaries

B.

Rent and Rates

C.

Canteen Expenses

D.

Discount allowed

Correct answer is B

No explanation has been provided for this answer.

395.

A person who has applied to purchase shares in a company is referred to as

A.

A promoter

B.

A subscriber

C.

An allottee

D.

An underwriter

Correct answer is B

Companies issue their shares for subc=scription either publicly or by private placement. People who apply to subscribe (buy) the shares are subscribers.