WAEC Accounting Questions and Answers. I will be showing you WAEC Accounting objective and theory repeated questions for free. You will also understand how WAEC Accounting questions are set and many more examination details.
The West African Examination Council is an examination body that set questions yearly from areas students should, after their studies in senior secondary school, be able to write and pass without stress.
WAEC Financial Accounting Questions and Answers 2023
2023 WAEC Accounting answers will be posted here today, 23rd May during the examination.
WAEC Accounting OBJ Answers Loading…
1a) Incomplete records refer to a condition wherein; an establishment is not practising double-entry bookkeeping. Instead, it is practising an unconventional accounting system, namely, a single-entry system, to sustain a decreased amount of data about its financial results.
i)We cannot prepare a Trial Balance to ensure the accuracy of the accounts in the absence of the double entry system.
ii)It fails to ascertain the accurate financial results of the organization.
iii)Investigation and examination of the profitability, solvency, and liquidity are difficult. Hence, the outsiders and banks may not lend money for the expansion of the business.
Incomplete records refers to a situation where a business or individual lacks certain essential accounting records or information necessary for accurate and comprehensive financial reporting.
Incomplete records refers to a method of financial accounting where a business or individual maintains an incomplete set of accounting records. It means that essential accounting information, such as transactions, financial statements, and supporting documents, is missing or insufficiently recorded
(PICK ANY THREE)
(i) Lack of knowledge or understanding: The business may lack the necessary knowledge or understanding of proper accounting practices, resulting in incomplete or inaccurate record-keeping.
(ii) Insufficient resources: Small businesses or startups with limited resources may not have the financial means to invest in sophisticated accounting software or hire professional accountants. As a result, they may struggle to maintain complete and accurate financial records.
(iii) Time constraints: Business owners or employees may be overwhelmed with day-to-day operations and find it challenging to allocate enough time to maintain comprehensive financial records. This can lead to incomplete or delayed recording of financial transactions.
(iv) Negligence or oversight: In some cases, business owners or employees may simply overlook the importance of maintaining complete records. They may neglect to document certain transactions or fail to follow proper accounting procedures due to carelessness or lack of attention to detail.
(v) Complexity of transactions: Certain businesses, such as those involved in international trade or complex financial instruments, may encounter transactions that are challenging to record accurately. This complexity can result in incomplete records or errors in financial reporting.
(vi) Legal or regulatory compliance issues: Businesses operating in highly regulated industries may face complex reporting requirements and compliance standards. Failure to understand or adhere to these regulations can lead to incomplete or inaccurate financial records.
(vii) Internal control weaknesses: Inadequate internal control systems within a business can contribute to incomplete record-keeping. Without proper checks and balances, there is a higher risk of errors, omissions, or even intentional manipulation of financial records.
(viii) Fraud or misconduct: In some unfortunate cases, incomplete records may be intentionally maintained as part of fraudulent activities or misconduct. By keeping certain transactions off the books or manipulating financial data, individuals within the organization may attempt to deceive stakeholders or evade taxes.
(PICK ANY THREE)
(i) The business may lack the necessary knowledge or understanding of proper accounting practices, resulting in incomplete or inaccurate record-keeping.
(ii) Small businesses or startups with limited resources may not have the financial means to invest in sophisticated accounting software or hire professional accountants. As a result, they may struggle to maintain complete and accurate financial records.
(iii) Business owners may be overwhelmed with day-to-day operations and find it challenging to allocate enough time to maintain comprehensive financial records.
(iv) In some cases, business owners or employees may simply overlook the importance of maintaining complete records by neglecting to document certain transactions or fail to follow proper accounting procedures due to carelessness or lack of attention to detail.
(v) Certain businesses, such as those involved in international trade or complex financial instruments, may encounter transactions that are challenging to record accurately. This complexity can result in incomplete records or errors in financial reporting.
(vi) Businesses operating in highly regulated industries may face complex reporting requirements and compliance standards. Failure to understand or adhere to these regulations can lead to incomplete or inaccurate financial records.
(vii) Inadequate internal control systems within a business can contribute to incomplete record-keeping. Without proper checks and balances, there is a higher risk of errors, omissions, or even intentional manipulation of financial records.
(viii) Incomplete records may be intentionally maintained as part of fraudulent activities or misconduct. By keeping certain transactions off the books or manipulating financial data, individuals within the organization may attempt to deceive stakeholders or evade taxes.
(a) Gross Profit Margin:
The gross profit margin is a profitability ratio that measures the percentage of sales revenue that exceeds the cost of goods sold. It indicates how efficiently a company is using its resources to generate profits before accounting for operating expenses. The formula for gross profit margin is as follows:
Gross Profit Margin = (Gross Profit / Sales Revenue) x 100%
where Gross Profit = Sales Revenue – Cost of Goods Sold
(b) Net Profit Margin:
The net profit margin is a profitability ratio that measures the percentage of sales revenue that remains as net profit after accounting for all expenses, including operating expenses, interest, taxes, and any other deductions. It gives an indication of a company’s overall profitability and efficiency in managing its expenses. The formula for net profit margin is as follows:
Net Profit Margin = (Net Profit / Sales Revenue) x 100%
(c) Stock Turnover:
The stock turnover ratio measures how efficiently a company is managing its inventory by indicating how many times the company’s inventory is sold and replaced during a given period. It is calculated by dividing the cost of goods sold by the average inventory during the period. The formula for stock turnover is as follows:
Stock Turnover = Cost of Goods Sold / Average Inventory
(d) Current Ratio:
The current ratio measures a company’s ability to pay its short-term liabilities from its short-term assets. It is calculated by dividing the company’s current assets by its current liabilities. The formula for the current ratio is as follows:
Current Ratio = Current Assets / Current Liabilities
(e) Quick Ratio:
The quick ratio, also known as the acid-test ratio, is a more conservative measure of a company’s ability to pay its short-term liabilities. It excludes inventory from the current assets used in the calculation, as inventory can be difficult to convert into cash quickly. The formula for the quick ratio is as follows:
Quick Ratio = (Current Assets – Inventory) / Current Liabilities
(PICK ANY FIVE)
(ix) Financial Analysts
(x) General Public.
THEIR RESPECTIVE INTERESTS IN THE ACCOUNTING INFORMATION:
(PICK ANY FIVE U PICKED ABOVE)
(i) Investors: Investors are interested in accounting information to assess the financial health and performance of a company. They use this information to make informed investment decisions and evaluate the potential returns and risks associated with their investments.
(ii) Creditors: Creditors, such as banks and suppliers, use accounting information to determine the creditworthiness and financial stability of a company. They rely on this information to assess the company’s ability to repay loans or fulfill financial obligations.
(iii) Managers: Managers within an organization use accounting information to monitor and evaluate the financial performance of the company. They rely on this information to make strategic decisions, allocate resources, and identify areas for improvement or cost-saving measures.
(iv) Government Agencies: Government agencies, such as tax authorities and regulatory bodies, use accounting information to ensure compliance with financial reporting standards, assess tax liabilities, and monitor the financial health of businesses within their jurisdiction.
(v) Employees: Employees are interested in accounting information, particularly financial statements, to evaluate the financial stability and profitability of the company they work for. It helps them gauge job security and potential for career growth within the organization.
(vi) Shareholders: Shareholders, who own shares in a company, are interested in accounting information to assess the company’s financial performance, dividends, and overall value. This information helps them evaluate the returns on their investment and make decisions related to buying or selling shares.
(vii) Suppliers: Suppliers analyze accounting information to evaluate the financial stability and payment capability of their customers. This helps them assess the creditworthiness and manage any risks associated with extending credit or providing goods and services on credit terms.
(viii) Competitors: Competitors may use accounting information, such as financial statements, to benchmark their own performance against industry peers. It provides insights into the financial strategies and competitive position of other companies, aiding in strategic decision-making.
(ix) Financial Analysts: Financial analysts rely on accounting information to analyze and interpret financial statements, assess company performance, and make recommendations to investors or clients. They use this information to provide insights, forecasts, and valuations of companies.
(x) General Public: The general public, including consumers and the local community, may have an interest in accounting information to evaluate the financial stability, ethical practices, and social responsibility of companies. This information can influence public perception, consumer behavior, and public trust in the organization.
Accounting ratios are mathematical calculations used to evaluate and analyze the financial performance and position of a company. These ratios are derived from the financial statements, such as the balance sheet, income statement, and cash flow statement, and provide insights into various aspects of a company’s operations, profitability, liquidity, solvency, and efficiency.
Accounting ratios, also known as financial ratios, are quantitative tools used to analyze and interpret financial statements. They are derived from the financial data contained in the balance sheet, income statement, and cash flow statement of a company. Accounting ratios help assess the financial performance, efficiency, liquidity, profitability, and solvency of an organization.
These ratios provide meaningf
EXAMPLE OF LIQUIDITY RATIO:
(Pick Any ONE)
(PICK ANY THREE)
(i) Accounting ratios are used to assess the overall performance of a company by analyzing key indicators such as return on investment (ROI), return on assets (ROA), and return on equity (ROE).
(ii) Accounting ratios such as current ratio, quick ratio, and debt-to-equity ratio help assess the financial health and stability of a business.
(iii) Accounting ratios such as gross profit margin, net profit margin, and return on sales (ROS) are used to measure a company’s profitability.
(iv) Accounting ratios like current ratio and quick ratio help evaluate a company’s liquidity position and its ability to meet short-term obligations.
(v) Accounting ratios play a crucial role in investment analysis by allowing investors use ratios like earnings per share (EPS), price-to-earnings (P/E) ratio, and dividend yield to assess the investment potential of a company’s stock.
(vi) Lenders and creditors use accounting ratios to evaluate a company’s creditworthiness and determine its borrowing capacity.
(vii) Accounting ratios are used to compare a company’s performance with industry averages or competitors.
(PICK ANY THREE)
(i) Accounting ratios are based on historical financial statements, which may not accurately reflect the current financial position or future prospects of a company.
(ii) Accounting ratios provide numerical indicators but often lack the context behind the numbers.
(iii) Accounting ratios heavily rely on the accuracy and reliability of financial statements. However, financial statements can be subjective and influenced by management judgments, accounting policies, and potential manipulation. Inaccurate or misleading financial statements can lead to distorted ratio analysis.
(iv) Accounting ratios primarily focus on financial data, such as balance sheets and income statements, while excluding non-financial aspects like customer satisfaction, employee morale, or brand value.
(v) Varying reporting practices of different companies can distort the accuracy and comparability of ratios, limiting their usefulness for benchmarking or industry analysis.
(vi) Financial statements are typically prepared on a quarterly or annual basis, leading to a time lag between the occurrence of events and their reflection in the ratios.
(vii) Accounting ratios often overlook non-financial factors such as environmental sustainability, social responsibility, or corporate governance practices.
More Answers Loading…
Note: The answers below are for 2022
(i) Sales ledger account
(ii) Purchase Ledger account
(iii) General ledger account
(Pick any two)
(i) Control accounts helps in locating errors
(ii) Control account is used to detect missing figures
(iii) control account provide a check on the accuracy of balances of the ledgers
(iv) control account save time and eradicate fraud
(PICK ANY FOUR)
(i) Cheque to suppliers
(ii) Return outwards
(iii) Discounts received
(iv) Contra entry
(v) Credit notes received
(PICK ANY FOUR)
(i) Discounts allowed
(ii) Dishonoured cheque
(iii)Debit note issued
(vi)Interest charged on overdue
Goodwill can be defined as the excess of the purchases consideration over the total value of assets less liabilities. It is also an asset that cannot be seen it touched hence it is referred to as intangible asset
(i) Public welfare
(ii) Higher education
(iii) Health and hospitals
(iv) Highways and roads
(vi) Maintenance of building/infrastructure
(i)Raw Material Inventory: Raw materials are the basic materials that a manufacturing company buys from its suppliers. The former uses them to convert them into the final products by applying manufacturing processes. For example, aluminum scrap is the raw material for a company that produces aluminum ingots.
(ii)Work in Progress Inventory (WIP): Work in progress inventory can also be called semi-finished goods. They are the raw materials that have been taken out of the raw materials store and are now undergoing the process of their conversion into the final products. So these are the partly processed raw materials lying on the production floor
(iii)Finished Goods Inventory:Finished goods are the final products obtained after applying the manufacturing processes to the raw materials and the semi-finished goods discussed above in the article. They are saleable, and their sale contributes fully to the revenue from the company’s core operations.
Accumulated fund: Accumulated fund are fund held by a non-profit making organization (such as a club or society) to which a surplus of income over expenditure is credited and to which any deficit is debited. The value of the accumulated funds can be calculated at any time by valuing the net assets (i.e. assets less liabilities) of the organization.
Statement of affairs: statement of affairs is a financial statement that displays assets and liabilities, but it’s not as detailed as the balance sheet. The statement of affairs is a single entry system that shows the beginning and ending balances for capital. If the ending capital is higher, there’s a profit; otherwise, there’s a loss.
(PICK ANY FIVE)
(i) Entrance fees
(iv)Profit from bar
(v)Disposal of assets
(vi)Profit from special events
(vii)Interest from investment
(vii)) Government subvention
(In a tabular form)
Receipt and payment account:
(i) only cash transactions are recorded
(ii) It includes capital item
(iii)Balance represents cash in hand or bank overdraft
Income and Expenditure account:
(i) There is adjustment for accruals and prepayments
(ii) It excludes capital items
(iii) balance represents surplus or deficiency
WAEC 2023/2024 Accounting Answers to Questions
Below are WAEC Accounting Practice Questions and Answers 2023/2024 to OBJ/ESSAY
1. The officer responsible for ascertaining whether all public expenditures and appropriations are in time with the approved guideline is the
C. Auditor General
ANSWER: C (Auditor General)
2. The cash basis of accounting requires the recognition of revenue only when they are
A. sent Out
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
ANSWER: B (Profitability)
WAEC Accounting Essay and Objective 2023 (EXPO)
The above questions are not exactly 2023 WAEC Accounting questions and answers but likely WAEC Accounting repeated questions and answers.
These questions are for practice. The 2023 WAEC Accounting expo will be posted on this page during the WAEC Accounting examination starts. Keep checking and refreshing this page for the answers.
Keep checking and reloading this page for more answers. More Answers Loading…
How to Pass WAEC Financial Accounting Examination
1. Have a Positive Mindset:
It is obvious that until your mindset is positive, your life will not be positive. As you prepare for WAEC, you must develop a positive mindset toward your fate.
Don’t say, “WAEC is very hard I don’t know whether I will pass” and don’t believe anyone that says you cannot pass WAEC 2023 on your own.
Have the mentality, “If others passed WAEC 2023 in the past, then I will be like them. Refuse to be identified with failure or those that failed in the past.
Even if this year’s WAEC Exam is not your first time, it doesn’t mean that you cannot pass WAEC 2023 marketing this time around.
Sit for maths 2023/2024 with a refined mindset. Nothing will make you fail WAEC 2023. Until your mindset is positive, your life will not be positive.
2. Avoid Bad Companies
If you are really serious about passing WAEC 2023 Accounting, try and avoid bad companies. They will discourage and engage you in activities that will not enhance your success. Remember that their mindset may not correspond to yours.
3. Set Good Targets and Plans:
If you have made up your mind to pass WAEC Financial Accounting 2023, the next thing you should do is set targets. Write down the type of grades you want in WAEC 2023. If you want all As, zero Fs, and Zero Es then you should start planning it now.
Make sure you create a timetable and master plan to achieve your set goals. Remember, it takes nothing to dream but it takes everything to focus on your dream.
4. Get WAEC Accounting Recommended Textbooks 2023:
One of your plans should be to get the WAEC 2023 Financial Accounting recommended textbooks. Normally, the West African Examination Council recommends books for the examination.
But apart from WAEC 2023 literature in English where certain novels are compulsory, you are free to use any good textbook to prepare for WAEC 2023 Accounting exam.
Some topics are more difficult to understand. If you have any topic you are finding difficult to understand, then get another textbook that will make things simple for you.
5. Get WAEC Accounting Past Question:
This is a very good plan. Since WAEC 2023 and WAEC 2023 are of the same standard, you could use the same past questions to study for both.
If you are confused about how to get WAEC past questions. They are sold in good bookshops around. It is possible that the school where you registered could offer to give you some current past questions that will help you in WAEC 2023.
6. Start Preparing for WAEC Accounting 2023:
Stop wasting your time. Now that you have gotten textbooks and past questions, the next thing is to begin your reading. Early reading and practice are good for you; you will pass well on WAEC 2023.
7. Avoid Skipping Examples and Exercises:
It is very unfortunate that Secondary school students are fond of skipping exercises and even examples while studying textbooks.
They loved notebooks so much that they could ask, “can I read my Accounting, Mathematics, etc notebooks and pass WAEC 2023?”
Don’t be scared of attempting exercises; they are there to help you. Face it and overcome it!
8. Test Yourself on WAEC Accounting Questions and Answers
This is a good practice. Once in a while, answer full one year Accounting past questions on your own without checking the answers. Then mark to see your score. This will help you in many aspects.
9. Do Constant Practice:
Don’t get discouraged when certain topics are annoying, keep on practicing until you master everything. Never give up and never say never. Keep on keeping on….
10. Create Time for Recreation
Create time for yourself where you play and ease off stress. Do not overwork yourself; it can make you waste time unnecessarily. Once you work more than necessary, you are not gaining anything.
If you have any questions about WAEC 2023 Accounting Questions and Answers, kindly let us know in the comment box.
Last Updated on May 23, 2023 by Admin