WAEC Accounting Questions and Answers 2022/2023 (Theory and Objectives)

WAEC 2022/2023 Accounting Answers to Questions

WAEC Accounting Questions and Answers 2022/2023 to OBJ/ESSAY are listed here.

1. The officer in charge of ensuring that all public expenditures and appropriations are in accordance with the authorized schedule is the

A. Creditor

B. Cashier

C. Auditor General

D. Bursar

ANSWER: C (Auditor General)

2. The cash basis of accounting requires the recognition of revenue only when they are

A. sent Out

B. documented

C. lost

D received

ANSWER: D (Received)

3. Responsibility accounting is particularly concerned with

A. variable cost

B. fixed cost

C. controllable costs

D. uncontrollable costs

ANSWER: C (Controllable costs)

4. Earnings per share is a measure of

A. loss

B. profit

C. income

D. expenditure

ANSWER: B (Profitability)

WAEC Accounting ESSAY Questions and Answers 2022

The most prevalent sort of comparison is the industry standard. Analysts will often search for firms in the same industry and create an industry average to compare to the company under consideration.

Bloomberg and the S&P both provide industry-specific ratios. These are excellent resources for learning about the industry in general. Unfortunately, multiple companies included in an index can cause some ratios to be skewed.

The food and beverage ratio index includes companies that manufacture prepared foods as well as certain wholesalers.

Because one is a capital-intensive enterprise and the other is not, the ratios would be skewed in this scenario. As a result, it is preferable to do a cross-sectional analysis, in which organizations are individually selected that best match the company being studied.

2. Aggregate economy – It’s occasionally useful to look at a company’s ratio throughout the course of an entire economic cycle. This will assist the analyst in comprehending and predicting a company’s performance in changing economic situations, such as a recession.

3. Past performance of the company – This is a very popular analysis. It’s related to a time-series analysis, which focuses on ratio trends.

1cii) Accounting and financial ratios have limitations
Financial ratios have certain significant constraints that analysts should be aware of:

i)Many large corporations have divisions that operate in many industries. It’s tough to discover a useful set of industry-average ratios for these businesses.

ii)A company’s balance sheet may have been severely affected by inflation. Profits will be harmed in this instance as well. As a result, a ratio analysis of a single firm through time or a comparison of companies of various ages must be understood with caution.

2a. Working capital is the difference between a company’s current assets and current liabilities.

2b. Money employed, sometimes referred to as funds employed, refers to the total amount of capital used to acquire profits. It’s the total worth of a company’s assets, computed by adding fixed assets to working capital or deducting current liabilities from total assets.

2c. A fixed asset is an item with a useful life that exceeds an entity’s minimum capitalization limit and has a longer useful life than one reporting period.

2d. Cash and any other corporate asset that will be converted to cash within one year of the date stated in the balance sheet’s heading is referred to as a current asset. (An asset that will convert to cash within the length of a company’s operational cycle is termed a current asset if the company’s operating cycle is longer than one year.)

2e. Stock turnover is a measurement of how many times inventory is sold or used in a given time period, such as a year.

Inventory turnover is calculated by dividing the cost of products sold (or net sales) by the average inventory.

3a. In accounting, the accrual principle states that expenses and revenues are recorded in the period in which they occur, regardless of whether or not cash is involved.

3b. According to the business entity idea, a business’s transactions must be documented independently from those of its owners or other businesses.

This necessitates the use of separate accounting records for the organization that are fully free of any other entity’s or the owner’s assets and liabilities.

3c. The Dual Aspect Concept, also known as the Duality Principle, is a fundamental accounting rule that requires all elements of an accounting transaction to be recognized.

3d. REGULARITY CONCEPT is the idea that each accounting period is related with a specific economic activity that can be measured, accounted for, and reported on.

3e. The going concern principle assumes that a company will continue to operate for the foreseeable future. On the other hand, this means that the company will not be compelled to shut down operations and dispose its assets at fire-sale rates in the near future.

4a) A company is a legal body made up of a group of people, whether natural, legal, or a combination of the two, who come together to carry on a commercial or industrial operation.

4bi) An ordinary share indicates equity ownership in a firm in proportion to all other ordinary shareholders, based on their percentage ownership. By definition, all other shares of a company’s stock are preferred shares.

4b(ii)Preference shares, also known as preferred stock, are shares of a corporation’s stock that pay dividends to stockholders before common stock payments are paid out. If the company goes bankrupt, preferred stockholders are entitled to be paid first from the company’s assets.

4b(iii) A debenture is a debt instrument that is not backed by tangible assets or collateral.
Debentures are simply secured by the issuer’s overall creditworthiness and reputation. This form of bond is commonly issued by both enterprises and governments to secure capital.

4b(iv) A company’s authorised capital (also known as authorised share capital, registered capital, or nominal capital in the United States) is the maximum amount of share capital that the company’s constitutional documents authorize it to issue (allocate) to shareholders.

5a) journal
(i)suspense purchase Dr GHC(19,000) , Cr GHC(19,000)
(ii)returns inwards suspenses Dr(8000), Cr(8000)
(iii)suspense cashbook Dr(19,600), Cr(19,000)
(iv)suspense cash ook Dr(98,000), Cr(98,000)
(v) repairs of plant and machinery Dr(11,000) , Cr(11,000)
(vi) customer sales Dr(158,980), Cr(158,950)
(vii) supplier suspense(25,500 *2) Dr(51,000) cr(51,000)
(5b)
Suspense A/C:

Debit side:
purchases(19,000)
cash book(19600)
cash book(98000)

credit side;
returns inward(8,000)
supplier (51,000)
c/f (77,600)
136,600

No.5) use the image below

No.6) use the image belowNo7) use the image below No.8) use the image below

(9)
king star enterprises
departmental, trading, profit & loss acct
Debit side:
A le, B le
opening stock: 1000, 800
add purchases: 147200, 132800
148200, 123,600
add carriage: 1000, 1000
149200, 124600
less closing stock: 1200, 600
148000,124000
gross profit: 12000,16000
160000, 140000
office exp: 480, 120
rates: 176, 94
insurance: 692, 173
light: 384, 96
repairs: 240, 60
net profit: 10028, 159507
12000, 160000

credit side
A le, B le
sales: 160000,140000
160000, 140000
gross profit: 12000, 16000
12000, 160000

Note: The above answers are WAEC Accounting likely questions and answers that will come out not the exact 2022 WAEC Accounting Answers.

WAEC Accounting Essay and Objective 2022 (EXPO)

The above questions are likely WAEC Accounting repeated questions and answers, rather than 2022 WAEC Accounting questions and answers.

These are just practice questions. During the WAEC Accounting examination, the 2022 WAEC Accounting expo will be posted on this page. For the answers, keep checking and refreshing this page.

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