2023 Financial Accounting objectives and paper 2 for WASSCE(WAEC)
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There is a a saying which goes thus, "You cannot give what you don't have". This is very true since whatever
you possess is what you can give. Before you write your wassce exams, you need to have access to resource that can
help you study efficiently.
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In this article, I have Written down 50 questions and answers including pdf which contain the
Financial Accounting paper 2 from WASSCE (WAEC) for Financial Accounting 2023.
This will guide you to understand the pattern WAEC follows when setting WASSCE questions for Financial Accounting. Help
yourself by going through each question and answer to prepare yourself for the real exam. I wish
you success ahead.
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You can study the 50 (fifty) WASSCE Financial Accounting past questions and answer for 2023 by checking
the content below or using the table of content below to navigate to the number of your choice
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Table of Contents
- WASSCE/WAEC Financial Accounting (2023) Questions and Answers 1 - 10
- WASSCE/WAEC Financial Accounting (2023) Questions and Answers 11 - 20
- WASSCE/WAEC Financial Accounting (2023) Questions and Answers 21 - 30
- WASSCE/WAEC Financial Accounting (2023) Questions and Answers 31 - 40
- WASSCE/WAEC Financial Accounting (2023) Questions and Answers 41 - 50
- Download WASSCE/WAEC Financial Accounting pdF (2023) Paper 2 (essay questions and answer 1 - 9)
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WASSCE/WAEC Financial Accounting (2023) Questions and Answers 1 - 10
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1. One of the internal users of accounting information is the
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(a) Government
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(b) Management
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(c) Creditors
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(d) Investors
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The correct answer is: (b) Management
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2. A crane hired by a building construction company would be classified as
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(a) A financial cost
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(b) A direct manufacturing cost
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(c) An overhead cost
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(d) An administration cost
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The correct answer is: (b) A direct manufacturing cost
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3. A business should not lay claim to any profit before it is earned. This is in accordance with the
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(a) Consistency concept
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(b) Prudence concept
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(c) Dual aspect concept
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(d) Going concern concept
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The correct answer is: (b) Prudence concept
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Use the following information to answer question 4 and 5
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Trade creditors (31|12|2020) ----------------------- # 4,000
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Paid for purchases in cheque: 2021 ----------------- # 110,000
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Carriage inwards ----------------------------------- # 1,000
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Trade creditors (31|12|2021) ----------------------- # 6000
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4. The total purchases in 2021 is
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(a) # 121,000
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(b) # 117,000
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(c) # 113,000
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(d) # 111,000
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The correct answer is: (c) # 113,000
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5. The balance c/d on trade creditors will be recorded in the balance sheet as
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(a) Current asset
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(b) Fixed asset
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(c) Long-term liability
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(d) Short-term liability
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The correct answer is: (d) Short-term liability
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6. The accounting concept which is the basis upon which assets of a business are valued is the
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(a) Consistency concept
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(b) Dual concept
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(c) Historical cost concept
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(d) Accrual concept
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The correct answer is: (c) Historical cost concept
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Use the following information to answer questions 7 to 9.
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The following transactions relates to Osei Enterprises for the year ended 31st December 2020:
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Purchases ---------------------------- D 160,000
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Returns outwards --------------------- D 880
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Carriage inwards --------------------- D 740
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Returns inwards ---------------------- D 620
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Sales -------------------------------- D 195,000
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Salaries ----------------------------- D 27,600
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Closing stock ------------------------ D 14,100
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7. The cost of goods available for sale is
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(a) D 159,860
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(b) D 159,380
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(c) D 159,260
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(d) D 159,120
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The correct answer is: (a) D 159,860
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8. The gross profit is
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(a) D 49,360
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(b) D 49,220
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(c) D 48, 620
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(d) D 45, 860
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The correct answer is: (c) D 48, 620
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9. The net profit is
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(a) D 21,760
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(b) D 21, 620
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(c) D 21, 020
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(d) D 18 260
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The correct answer is: (c) D 21, 020
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10. The concept which underlies double entry bookkeeping is
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(a) Accrual concept
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(b) Duality concept
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(c) Money measurement concept
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(d) Historical cost concept
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The correct answer is: (b) Duality concept
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WASSCE/WAEC Financial Accounting (2023) Questions and Answers 11 - 20
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11. which of the following items is a tangible asset?
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(a) Goodwil
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(b) Lease
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(c) Machinery
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(d) Copyright
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The correct answer is: (c) Machinery
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12. Discount allowed is shown in financial statement as
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(a) An expense
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(b) An income
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(c) An asset
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(d) A liability
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The correct answer is: (a) An expense
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13. The reason for treating carriages in the trading account is because
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(a) It is an expense on goods sold to customers
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(b) Carriage outwards is an expense item in the profit and loss account
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(c) It does not appear in the balance sheet
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(d) It is an expense on goods purchased
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The correct answer is: (d) It is an expense on goods purchased
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14. Wages of machine operators in manufacturing account are treated as
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(a) Direct expense
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(b) Direct labour
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(c) Indirect expense
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(d) Indirect labour
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The correct answer is: (b) Direct labour
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Use the information to answer questions 15 and 16
Sammy acquired plant and machinery costing N12,000 with an estimated useful life of 4 years and residual value of N2,000. The sum of the years digits method is used
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15. The depreciation to be charged for the third year will be
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(a) # 4,000
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(b) # 3,000
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(c) # 2,000
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(d) # 1,000
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The correct answer is: (a) # 4,000
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16. The value of the asset at the end of the first year is
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(a) # 8,000
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(b) # 5,000
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(c) # 3,000
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(d) # 2,000
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The correct answer is: (a) # 8,000
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17. The allocation of funds from treasury to accounting heads in public sector is
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(a) Float
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(b) Vote
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(c) Virement
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(d) Budget
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The correct answer is: (b) Vote
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18. The sources of funds available to a local government/district assembly includes
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(a) Common fund allocation
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(b) Excise duties
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(c) Road tolls
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(d) Foreign loans
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The correct answer is: (a) Common fund allocation
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19. Carriage inwards on raw materials is recorded in the
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(a) Manufacturing account
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(b) Trading account
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(c) Profit and loss account
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(d) Balance sheet
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The correct answer is: (a) Manufacturing account
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Use the following information to answer question 20 and 21
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The health department of Banjul Local Government incurred the following expenditure, in 2020
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Construction of hospital wards ---------------- Le 200,000
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Purchase of hospital beds --------------------- Le 20,000
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Purchase of stationeries ---------------------- Le 15,000
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Salaries and wages ---------------------------- Le 60,000
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Purchase of drugs ----------------------------- Le 50,000
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Purchase of x-ray machine --------------------- Le 100,000
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20. The capital expenditure for the year is
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(a) Le 445,000
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(b) Le 370,000
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(c) Le 320,000
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(d) Le 125,000
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The correct answer is: (c) Le 320,000
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WASSCE/WAEC Financial Accounting (2023) Questions and Answers 21 - 30
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21. The recurrent expenditure for the year is
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(a) Le 445,000
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(b) Le 370,000
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(c) Le 320,000
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(d) Le 125,000
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The correct answer is: (d) Le 125,000
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22. Reliability as a quality of accounting information means that accounting
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(a) Rules and guidelines are applied
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(b) Information is comprehensive
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(c) Report is prepared promptly
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(d) Information is prepared based on evidence
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The correct answer is: (d) Information is prepared based on evidence
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23. The error that affects the agreement of a trial balance totals is
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(a) Error of commission
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(b) Error of principle
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(c) Compensating error
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(d) Casting error
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The correct answer is: (d) Casting error
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24. Profit distributed to ordinary shareholders of a limited liability company is
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(a) Interest
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(b) Surplus
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(c) Dividend
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(d) Reserve
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The correct answer is: (c) Dividend
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25. The purchses day book is used to record
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(a) Cash purchases
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(b) Credit purchases
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(c) Purchases returns
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(d) Total purchases
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The correct answer is: (b) Credit purchases
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26. In the final account of a limited liability company, debenture interest paid is recorded in the
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(a) Trading account
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(b) Profit and loss account
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(c) Private ledger
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(d) Nominal ledger
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The correct answer is: (b) Profit and loss account
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27. Supplier's personal account are found in the
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(a) Purchases ledger
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(b) Sales ledger
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(c) Private ledger
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(d) Nominal ledger
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The correct answer is: (a) Purchases ledger
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28. Memorandum branch account is prepared to determine
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(a) Credit sales
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(b) Gross profit
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(c) Closing stock
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(d) Opening stock
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The correct answer is: (b) Gross profit
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Use the following information to answer question 29 and 30
Tauras LTD was incorporated with the legal right to issue five million ordinary shares. The company has issued three million of the shares at GHc 0.60 per share. To date, the company has made calls of GHc 0.40 per share. All calls have been paid by shareholders except for GHc 100,000 owing from one shareholder
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29. The paid-up share capital is
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(a) GHc 3,000,000
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(b) GHc2,000,000
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(c) GHc 1,200,000
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(d) GHc 1,100,000
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The correct answer is: (d) GHc 1,100,000
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30. The authorised number of shares is
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(a) 8,000,000
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(b) 5,000,000
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(c) 3,000,000
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(d) 100,000
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The correct answer is: (b) 5,000,000
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WASSCE/WAEC Financial Accounting (2023) Questions and Answers 31 - 40
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31. The accounts maintained in the nominal ledger are
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(a) Income and capital
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(b) Expenses and income
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(c) Liabilities and capital
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(d) Assets and liabilitie
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The correct answer is: (b) Expenses and income
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32. Which of the following items are apportioned on the basis of purchases in preparing departmental accounts?
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(a) Selling and distribution expenses
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(b) Lighting and cooling expenses
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(c) Carriage inwards
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(d) Carriage outwards
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The correct answer is: (c) Carriage inwards
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33. The two column cash book records
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(a) Receipts and payment in cash only
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(b) Receipt and payment by cheque only
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(c) All receipts and payments both in cash and by cheque
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(d) All receipts in cash only and payments by cheque
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The correct answer is: (c) All receipts and payments both in cash and by cheque
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Use the following information to answer questions 34 and 35
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The transactions of All Girls' Social Club for the year 2021 are as follows:
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Bar sales D30,000, Bar purchases D17,000 and Rent D1,200.
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31st December ------------------------- 2020 -------------- 2021
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Stock at bar -------------------------- D1,400 ------------ D1,600
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Owing for bar supplies ---------------- D6,500 ------------ D7,300
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34. The value of purchases for the year is
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(a) D17,800
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(b) D17,000
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(c) D16,800
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(d) D16,200
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The correct answer is: (a) D17,800
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35. The net profit on the bar to be transferred to the income and expenditure account for the year ended 31st December 2021 is
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(a) D13,000
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(b) D12,400
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(c) D11,800
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(d) D11,200
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The correct answer is: (d) D11,200
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36. Which of the following rules is applicable in the absence of a partnership agreement? interest is payable
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(a) On drawings at the rate of 5% perannum
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(b) On agreed capital contributed at 5% per annum
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(c) On any contribution in excess of agreed capital at 5% per annum
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(d) At 5% per annum on current's account balances
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The correct answer is: (c) On any contribution in excess of agreed capital at 5% per annum
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37. A reason a business is not able to keep full set of accounting records is that
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(a) The business does not make profit
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(b) The business is not a trading concern
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(c) Double entry shows the true profit
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(d) Double entry is expensive to maintain
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The correct answer is: (d) Double entry is expensive to maintain
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38. Beauty started business with #40,000, made a profit of #50,000 and ended the year with #70,000 capital. What would have accounted for the closing capital?
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(a) Cash shortage of #30,000 was recorded
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(b) Drawings of #20,000 was made
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(c) Beauty was paid a salary of #40,000
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(d) The opening capital of #40,000 was invested
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The correct answer is: (b) Drawings of #20,000 was made
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39. If sales is D12,000 and the gross profit mark-up percentage is 25%. What is the cost of sales?
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(a) D9,600
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(b) D9,000
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(c) D3,000
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(d) D2,400
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The correct answer is: (a) D9,600
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40. The accumulated fund for a not-for-profit making organization is
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(a) Assets + liabilities
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(b) Assets - liabilities + capital
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(c) Assets - liabilities
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(d) Capital + liabilities
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The correct answer is: (c) Assets - liabilities
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WASSCE/WAEC Financial Accounting (2023) Questions and Answers 41 - 50
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Use the following information to answer question 41 to 43
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The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
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Balance b/f ------------------------------- D200,000
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Commission received ----------------------- D180,000
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Receipts from Ojah ------------------------ D98,300
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Electricity bill -------------------------- D40,000
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Rent -------------------------------------- D73,400
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Drawings ---------------------------------- D28,600
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Insurance --------------------------------- D12,800
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41. The total income for the month is
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(a) D306,900
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(b) D278,300
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(c) D180,000
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(d) D154,800
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The correct answer is: (b) D278,300
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42. The balance brought down at the end of the month is
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(a) D478,300
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(b) D323,500
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(c) 278,300
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(d) 154, 800
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The correct answer is: (b) D323,500
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43. The total expensed for the month is
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(a) D478,300
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(b) D323,500
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(c) D278,3000
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(d) D154,800
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The correct answer is: (d) D154,800
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44. Which of the following items is classified as capital expenditure in pubic sector accounting?
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(a) Financial charges
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(b) Construction works' cost
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(c) Training and conference cost
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(d) Wages and salaries
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The correct answer is: (b) Construction works' cost
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Use the following information to answer questions 45 and 46
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Capital (01|01|2020) ------------------------- Le1,934,600
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Capital (31|12|2020) ------------------------- Le2,530,000
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Expenses ------------------------------------- Le345,900
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Drawings for 2020 ---------------------------- Le72,500
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Additional capital for 2020 -------------------- Le250,000
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45. The gross profit for the year is
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(a) Le763,800
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(b) Le595,400
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(c) Le417,900
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(d) Le167,900
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The correct answer is: (c) Le417,900
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46. The net profit for 2020 is
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(a) Le595,400
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(b) Le522,900
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(c) Le417,900
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(d) Le72,000
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The correct answer is: (c) Le417,900
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47. A partnership is formed by
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(a) Only one person
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(b) Two or more individuals
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(c) Two or more companies
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(d) Two individuals only
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The correct answer is: (b) Two or more individuals
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Use the following information to answer questions 48 and 49
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Ant and Bee withdrew GHc 14,000 and GHc 10,000, respectively at 18% per annum from the partnership.
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48. The interest on drawings for Ant is
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(a) GHc 1,920
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(b) GHc 1,120
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(c) GHc 800
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(d) GHc 700
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The correct answer is: (b) GHc 1,120
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49. The total interest on drawings to be charged to profit and loss appropriation account is
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(a) GHc 1,920
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(b) GHc 1,120
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(c) GHc 800
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(d) GHc 700
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The correct answer is: (a) GHc 1,920
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50. Which of the following items is found in the profit and loss account of a company?
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(a) Proceeds from issue of shares
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(b) Proposed dividend
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(c) Directors' renumeration
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(d) Transfer to general reserves
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The correct answer is: (b) Proposed dividend
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Download WASSCE/WAEC Financial Accounting pdF (2023) Paper 2 (essay questions and answer 1 - 9)
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We have provided a pdf where you can practice wassce Paper 2 (essay questions) for Financial Accounting 2023. To download the
pdf right away,
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