WAEC Financial Accounting Questions and Answers 2022/2023 – OBJ and Essay

This post will supply you with 2022 WAEC Financial Accounting free questions and Answers, 2022 WAEC Financial Accounting free Expo, WASSCE Accounting Past and likely Questions, how WASSCE Accounting exam will look like, and everything you need to know about 2022 WAEC Accounting examination.

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WAEC Accounting Essay and Objective 2022 (EXPO)

 WAEC 2022 Accounting answers is now available …..

F/ACCT

(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.

 

(3ai)

Entrance Fees or Admission Fees is the amount that a person pays at the time of becoming a member of a Not-for-Profit Organization. It is a revenue receipt. Therefore, we account it as an income and credit it to Income and Expenditure Account.

 

(3aii)

A subscription is a signed agreement between a supplier and customer that the customer will receive and provide payment for regular products or services, usually for a one-year period.

No (3b)

(Pick Any five)

(i) No Opening Balance:- Opening balance is not require to prepare income and expenditure account.

 

(ii) Accrual Basis:- Income and expenditure account is maintained on accrual basis.

 

(iii) Based On Receipt And Payment Account:- Income and expenditure account is prepared on the basis of receipt and payment account at the end of the accounting year.

 

(iv) Non-cash Items:- This account records non-cash items.

 

(v) Debit And Credit Rule:- Expenses and losses are debited and incomes are credited as it is a nominal account.

 

(vi) No Capital Transactions:- Only revenue items are included in income and expenditure account. So, capital items are excluded while preparing this account.

(vii) Only Current Year’s Transactions:- Income and expenditure account includes only current periods transactions.

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(4ai)

(i)Cash flow statement

(ii)Consolidated revenue fund

(iii)Vote book

(4aii)

(i)Legislator arms

(ii)The public

(iii)Local authorities

(iv)Local investors

 

(4b)

(i)Training; Public accountants are trained in analysis, data collection and testing, which allows them to look at accounts and see if the assumptions made are the correct ones. WHILE. private accountants are trained more in process issues especially in terms of accounts payable and billing techniques.

 

(ii)Environment; A public accountant’s life is much more varied than that of a private one. WHILE private accountant you’re likely to be in your own office and not moving about, with regular hours to boot.

 

(iii)Exposure; public accountancy firm (such as the Big Four) expose you to a variety of different types of accountancy job within a whole host of industries. WHILE private accounting the jobs are within smaller firms who are not so well known, and the experiences gained are more niche.

(iv)Stress; public accountant is notoriously much more stressful than that of their private counterparts WHILE private accounting their industry, which is a regular day-to-day workforce and a steady stream of work.

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*2021 WAEC FINANCIAL ACCOUNTING THEORY SOLUTION*

 

*ANSWER ANY 2 IN SECTION A*

 

(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.

 

(3ai)

Entrance Fees or Admission Fees is the amount that a person pays at the time of becoming a member of a Not-for-Profit Organization. It is a revenue receipt. Therefore, we account it as an income and credit it to Income and Expenditure Account.

 

(3aii)

A subscription is a signed agreement between a supplier and customer that the customer will receive and provide payment for regular products or services, usually for a one-year period.

 

(3b)

(Pick Any five)

(i) No Opening Balance:- Opening balance is not require to prepare income and expenditure account.

 

(ii) Accrual Basis:- Income and expenditure account is maintained on accrual basis.

 

(iii) Based On Receipt And Payment Account:- Income and expenditure account is prepared on the basis of receipt and payment account at the end of the accounting year.

 

(iv) Non-cash Items:- This account records non-cash items also

(v) Debit And Credit Rule:- Expenses and losses are debited and incomes are credited as it is a nominal account.

 

(vi) No Capital Transactions:- Only revenue items are included in income and expenditure account. So, capital items are excluded while preparing this account.

 

(vii) Only Current Year’s Transactions:- Income and expenditure account includes only current periods transactions.

 

 

(4a)

bank reconciliation statement 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 covers all charges and 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 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” 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 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 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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2022 financial accounting obj loading……

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Note the answers below is last year exam

1-10: ABABABDCAA

11-20: CCCBABBDAC

21-30: DDDCBCCBBB

31-40: BDCBBBDCCB

41-50: CAABDBCCBB

WAEC Financial Accounting ESSAY Questions and Answers 2022

1. The Industry norm – This is the most common type of comparison. Analysts will typically look for companies within the same industry and develop an industry average, which they will compare to the company they are evaluating.

Ratios per industry are also provided by Bloomberg and the S&P. These are good sources of general industry information. Unfortunately, there are several companies included in an index that can distort certain ratios.

If we look at the food and beverage ratio index, it will include companies that make prepared foods and some that are distributors.

The ratios in this case would be distorted because one is a capital-intensive business and the other is not. As a result, it is better to use a cross-sectional analysis, i.e. individually select the companies that best fit the company being analyzed.

2. Aggregate economy – It is sometimes important to analyze a company’s ratio over a full economic cycle. This will help the analyst understand and estimate a company’s performance in changing economic conditions, such as a recession.

3. The company’s past performance – This is a very common analysis. It is similar to a time-series analysis, which looks mostly for trends in ratios.

1cii) Limitations to Accounting ratios/Financial ratios
There are some important limitations of financial ratios that analysts should be conscious of:

i)Many large firms operate different divisions in different industries. For these companies, it is difficult to find a meaningful set of industry-average ratios.

ii)Inflation may have badly distorted a company’s balance sheet. In this case, profits will also be affected. Thus a ratio analysis of one company over time or a comparative analysis of companies of different ages must be interpreted with judgment

2a. Working capital is the amount of a company’s current assets minus the amount of its current liabilities.

2b. Capital employed, also known as funds employed, is the total amount of capital used for the acquisition of profits. It is the value of all the assets employed in a business and can be calculated by adding fixed assets to working capital or subtracting current liabilities from total assets.

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

2d. A current asset is cash and any other company asset that will be turning to cash within one year from the date shown in the heading of the company’s balance sheet. (If a company has an operating cycle that is longer than one year, an asset that will turn to cash within the length of its operating cycle is considered to be a current asset.)

2e. The rate of stock turnover is a measure of the number of times inventory is sold or used in a time period such as a year.

The equation for inventory turnover equals the cost of goods sold or net sales divided by the average inventory.

3a. The accrual concept in accounting means that expenses and revenues are recorded in the period they occur, whether or not cash is involved.

3b. The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.

Doing so requires the use of separate accounting records for the organization that completely exclude the assets and liabilities of any other entity or the owner.

3c. Dual Aspect Concept, also known as Duality Principle, is a fundamental convention of accounting that necessitates the recognition of all aspects of an accounting transaction.

3d. PERIODICITY CONCEPT is the concept that each accounting period has an economic activity associated with it, and that the activity can be measured, accounted for, and reported upon.

3e. The going concern principle is the assumption that an entity will remain in business for the foreseeable future. Conversely, this means the entity will not be forced to halt operations and liquidate its assets in the near term at what may be very low fire-sale prices.

4a)
A company is a legal entity made up of an association of persons, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise.

4bi) An ordinary share represents equity ownership in a company proportionally with all other ordinary shareholders, according to their percentage ownership in the company. All other shares of a company’s stock are, by
definition , preferred shares

4b(ii)Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, the shareholders with preferred stock are entitled to be paid from company assets first.

4b(iii) A debenture is a type of debt instrument that is not secured by physical assets or collateral.
Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond to secure capital.

4b(iv) The authorised capital of a company (sometimes referred to as the authorised share capital, registered capital or nominal capital, particularly in the United States) is the maximum amount of share capital that the company is authorized by its constitutional documents 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 belowNo.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 Financial Accounting likely questions and answers that will come out not the exact 2022 WAEC Accounting Answers. You can join our WatsApp Group for more updates.

WAEC Financial Accounting Likely Questions and answers

1. The officer responsible for ascertaining whether all public expenditure and appropriation are in time with the approved guideline 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)

Theory part

(1a)
In a Tabular form

(Choose Any two)

(Book keeping)
(i)It is basis for accounting
(ii)Persons responsible are called Book keeper’s
(iii)It does not require any personal skill
(iv)Financial statements are not prepared from records
(v)It cannot help for decision making

(Accounting)
(i)It is basis for business language
(ii)Persons responsible are called Accountants
(iii)It require skill and knowledge
(iv)Financial statement can be prepared from accounting records
(v)It help for decision making

(1bi)Sales
(choose Any one)
(i)out going invoices (ii)debit notes issued

(1bii)Purchased
(choose Any one)
(i)Incoming invoices
(ii)debit notes received

(1biii)Cash deposit
(choose Any one)

(i)Till slips
(ii)incoming cheque
(iii)Receipt

(1biv)Salary
(Choose Any one)
(i)time sheets
(ii)Job sheets
(iii)Time recorders (iv)Payroll registers

(1bv)
Return outward book
(i)Incoming credit note

(1c)
(i) For record purpose
(ii)For accounting purpose
(iii)For auditing and legal purpose

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How to Pass WAEC Financial Accounting Examination

Read the following tips carefully and get ready to make you WAEC with good grades.

Possess a Positive Attitude

It is self-evident that your life will not be positive until you have a positive perspective. You must have a good attitude about your fate as you prepare for WAEC.

Don’t utter things like “WAEC is incredibly difficult; I’m not sure if I’ll pass,” and don’t trust anyone who thinks you can’t pass WAEC 2022 on your own.

Have the mindset that “if others have passed WAEC 2022 in the past, then I will too.” Refuse to be associated with failure or those who have already failed.

Even if this isn’t your first time taking the WAEC Exam, it doesn’t mean you won’t pass WAEC 2022 Financial account this time.

With a refined attitude, sit for mathematics 2022/2023. Nothing will cause you to fail the WAEC 2022 examination. Your life will not be positive until you have a positive perspective.

Stay away from shady businesses

If you’re serious about passing WAEC Accounting 2022, stay away from bad firms. They will try to discourage you and get you involved in activities that will not help you succeed. Keep in mind that their mindset might not be the same as yours.

Make good goals and plans

If you’ve decided to pass WAEC Financial Accounting 2022, the next step is to create goals for yourself. Make a list of the grades you aim to get in WAEC 2022. You should start planning now if you want all As, no Fs, and no Es.

Make sure you have a timeframe and a master plan in place to meet your objectives. It’s important to remember that it takes nothing to dream, but everything to focus on your dream.

Purchase the WAEC Financial Accounting Recommended Textbooks for 2022

Obtaining the WAEC 2022 Financial Accounting suggested textbooks should be one of your goals. The West African Examination Council usually suggests literature for the exam.

However, except from WAEC 2022 English literature, where specified novels are required, you are free to utilize any decent textbook to study for the WAEC 2022 Accounting exam.

Some subjects are more difficult to grasp. If you’re having trouble understanding a topic, purchase a different textbook.

If you have any question, drop a comment below.

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