WAEC Financial Accounting MCQs

Which of the following is NOT an asset?

• Machinery

• Cash

• Inventory

• Accounts payable

The term 'liability' refers to:

• Resources owned by a business

• Debts owed by a business

• Investment in business

• Total revenue generated

The double-entry principle states that:

• Each transaction affects two accounts equally

• Each account has a single entry

• Transactions are recorded once

• Only cash transactions are recorded

The trial balance helps in:

• Calculating profits

• Preparing budgets

• Verifying ledger balances

• Assessing inventory

Which of the following accounts is a nominal account?

• Cash

• Debtors

• Capital

• Rent expense

The book where cash transactions are initially recorded is called:

• Journal

• Ledger

• Cash book

• Balance sheet

The term 'drawings' refers to:

• Profit earned by the business

• Owner's withdrawal from the business

• Loss incurred by the business

• Funds added by the owner

Goodwill is classified as:

• Fixed asset

• Current liability

• Current asset

• Long-term liability

A bank overdraft appears in the balance sheet under:

• Fixed assets

• Current liabilities

• Current assets

• Non-current liabilities

Which account is debited when cash is withdrawn from a bank account for office use?

• Cash account

• Bank account

• Drawings account

• Capital account