Hello and Welcome to SSCE (WAEC and NECO) Practice Test - Financial Accounting 1. You will attempt 30 randomly generated objective questions for 20 minutes. 2. Don't guess answers. Leave answer blank if not sure. Incorrect answers attracts -1 (negative one) and it is cumulative. 3. If time allowed elapsed, your quiz ends immediately and scores will displayed and ranked. 4. Your performance in each of the question attempted alongside step-by-step solutions to attempted questions will be displayed on the screen at the end of the assessment. 5. Fill the form below and Click on the Next button to Begin Full Name (Surname First): Location: Which of the following is not a method of depreciating fixed assets? A. Revaluation B. Straight line C. Diminishing balance D. Obsolescence D B C AIn preparing a profit and loss account, a decrease in provision for doubtful debts accounts is treated as A. current liability. B. expenses. C. income D. current asset A C B DWhich of the following is not a book of original entry? A. Sales journal B. Purchases account C. Cash account D. Return inwards journal B D C AThe quality of output information depends on the A. quality of input data. B. time of processing. C. speed of processing. D. quantity of output device D B A CWhich of the following items is found in the sales ledger control account? A. Discount received B. Total credit purchases C. Discount allowed D. Returns outwards D A B CAde Bola N NCapital 40,000 30,000Drawings 10,000 15,000Interest on Drawings is 5%;Profit is shared equally;Net profit for the period is N 4,250.Ade’s share of profit isA. N 5,500.B. N 4,250.C. N 2,750.D. N 1,250 C A D BWhich of the following is a source of revenue for a local government? A. Personal income tax B. Company registration fees C. Royalties D. Market tolls B A C DDr Cr GHc GHc Advertising 36,000 - Electricity 60,000 - Advertising was paid by cheque covering 12 monthly instalments ending March 31, 2012. Electricity was paid by cash covering 15 monthly instalments from March 1, 2011. Advertising owing in respect of the year ended June 30, 2012 is A. GHc 12,000. B. GHc 9,000. C. GHc 10 6,000. D. GHc 3,000. D B C A1/7/10 30/6/11 D D Stock 1,460 4,200 Motor van 3,600 3,200 Creditors 600 700 Net profit for the year is A. D 12,260. B. D 3,740. C. D 2,440. D. D 2,040 D A C BGoodwill is recognized in partnership accounts when A. the business makes a huge profit. B. the business has good customer relationship. C. a partner is dormant. D. a new partner is admitted B C A DThe process of using sales ledger balance to cancel off purchases ledger balance is A. balancing. B. set off. C. reconciliation. D. cancelling A B C DAssets acquired is recorded by debiting A. Asset Account, crediting Cash Account. B. Cash Account, crediting Asset Account. C. Purchase of Business Account, crediting Sale of Business Account. D. Asset Account, crediting Purchase of Business Account B D C AWhich of the following expresses the accounting equation? A. Capital + Assets = Liabilities B. Assets - Liabilities = Capital C. Liabilities + Current Assets = Fixed Assets D. Liabilities - Capital = Current Assets A C B DDr Cr GHc GHc Advertising 36,000 - Electricity 60,000 - Advertising was paid by cheque covering 12 monthly instalments ending March 31, 2012. Electricity was paid by cash covering 15 monthly instalments from March 1, 2011. Electricity in arrears as at June 30, 2012 amounted to A. GHc 12,000. B. GHc 10,000. C. GHc 8,000. D. GHc 4,000. A B C DWhich of the following is not stated in the partnership agreement? A. Profit sharing ratio B. Interest on capital C. Interest on fixed asset D. Purpose of partnership A B C DWhen the invoice of a customer is overcast, the supplier will send to him a A. cheque. B. payment voucher. C. debit note. D. credit note C A D B1/7/10 30/6/11 D D Stock 1,460 4,200 Motor van 3,600 3,200 Creditors 600 700 Closing capital is A. D 8,100. B. D 7,400. C. D 6,700. D. D 5,200 A B C DWhich of the following is the equation for determining net profit or Loss from the records of a firm? A. Closing Capital - Drawings- Capital Introduced B. Opening Capital + Drawings - Closing Capital C. Closing Capital + Opening Capital - Drawings D. Closing Capital Drawings - Opening Capital B A C DThe accounting concept that allows the cost of kitchen cutlery to be expensed, though it will be used for more than one year is A. materiality. B. accrual. C. going concern. D. business entity C A B DMr. White acquired Mr. Black’s business for GHc 410,000. The total assets were GHc 670,000 and liabilities amounted to GHc 320,000. How much was paid for goodwill? A. GHc 350,000 B. GHc 260,000 C. GHc 90,000 D. GHc 60,000 C D B AWhich of the following relates to cash basis of accounting? A. Accruals and prepayments are considered B. Debtors and creditors are recorded C. Fixed assets are written off in the year of purchase D. Profits are maximized A B C DThe cost of pulling goods into a saleable condition is charged to A. balance sheet. B. trial balance. C. profit and loss account. D. trading account B C D AWhich of the following describes a trial balance? A. It is a special account B. It is a list of balances in the books C. It reveals the financial position of a business D. It shows all the entries in the books of a business C B A DAde Bola N N Capital 40,000 30,000 Drawings 10,000 15,000 Interest on Drawings is 5%; Profit is shared equally; Net profit for the period is N 4,250. Bola’s share of profit is A. N 4,500. B. N 4,250. C. N 3,000. D. N 2,750 A C B DWhich of the following is not revealed by a firm’s accounting records? A. Profit of a period B. Quality of labour force C. Credit worthiness D. Value of assists D C B AWhich of the following is not a feature of accounting information? A. Affordability B.. Timeliness C. Accuracy D. Completeness C A D BThe instrument used to release fund which the minister of finance had earlier withheld is A. reserve expenditure warrant. B. supplementary general warrant. C. provisional general warrant. D. supplementary statutory warrant B C D AWhich of the following is a real account? A. Plant account B. Salaries account C. Creditors account D. Trading account B A D CThe accounting concept that assumes that a business will continue operating for an indefinite period is A. business entity. B. going concern. C. consistency. D. duality B C D AUnpresented cheques are cheques A. that have been recorded in the cash book, but not by the bank. B. that have been received by the bank, but not recorded in the cash book. C. returned by the bank. D. written, but not handed over to customers A B C D31 out of 30Are you ready to submit? 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