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2021 WAEC FINANCIAL ACCOUNTING VERIFIED QUESTIONS AND ANSWERS AVAILABLE NOW

*WAEC FINANCIAL ACCOUNTING VERIFIED ANSWERS*

ACCOUNTING OBJ:

1-10: CDCABACACC

11-20: ABACBADDCB

21-30: CBCABDACBD

31-40: BABAACCDAC

41-50: DCDCCCBBDA

(1a)

Accounting concepts are a set of general conventions that can be used as guidelines when dealing with accounting situations.

(1b)

(i) Business Entity: The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.

(ii) Accrual: The accrual principle is an accounting concept that requires transactions to be recorded in the time period in which they occur, regardless of when the actual cash flows for the transaction are received.

(iii) Going concern: is an accounting term for a company that is financially stable enough to meet its obligations and continue its business for the foreseeable future.

(iv) Consistency: The concept of consistency means that accounting methods once adopted must be applied consistently in future

(v) Periodicity: The periodicity concept is a period during which business enterprises are required to prepare financial statement at specified intervals.

(vi) Historical cost: A historical cost is a measure of value used in accounting in which the value of an asset on the balance sheet is recorded at its original cost when acquired by the company.

(4a)

Bank reconciliation statement: This is a summary of banking and business activity that reconciles an entity’s bank account with its financial records. In other words the statement outlines the deposits, withdrawals, and other activities affecting a bank account for a specific period.

(4bi)

Bank charges: These are charges that covers all fees made by a bank to their customers. In common parlance, the term often relates to charges in respect of personal current accounts or checking account.

(4bii)

Standing order: This is an instruction a bank account holder gives to their bank to pay a set amount at regular intervals to another’s account. The instruction is sometimes known as a banker’s order.

(4biii)

Credit transfer: This means a payment transaction by which a credit institution transfers funds to a payee’s account on the basis of a payer’s order, and the payer and the payee can be the same person.

(4biv)

Dishonoured cheques: These are cheques that a bank on which is drawn declines to pay. There are a number of reasons why a bank would refuse to honour a cheque, with non-sufficient funds being the most common one, indicating that there are insufficient cleared funds in the account on which the cheque was drawn.

(4bv)

unpresented cheque simply means that a cheque has been written and accounted for, but it has not yet been paid out by the bank from which the money is being drawn. Unpresented cheques are also referred to as outstanding cheques because the funds in question are, as the name suggests, outstanding.

(4bvi)

Uncredited cheques: These represent money that is available to the company but has not yet been recognised by the bank. This comes in the form of cheques paid in by customers and clients.

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