Financial Accounting Mock 2026

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Financial Accounting Mock 2026

Question 1 of 50

The accounting equation is

A. Assets = Capital − Liabilities B. Assets = Capital + Liabilities C. Capital = Assets + Liabilities D. Liabilities = Assets + Capital

Question 2 of 50

Which of the following is a current asset?

A. motor vehicle B. inventory C. building D. machinery

Question 3 of 50

Goods costing GH₵ 400 were sold for GH₵ 500. The gross profit is

A. GH₵ 100 B. GH₵ 400 C. GH₵ 500 D. GH₵ 900

Question 4 of 50

The concept that a business is treated as separate from its owner is the

A. going concern concept B. business entity concept C. consistency concept D. prudence concept

Question 5 of 50

Every transaction has two effects, one debit and one credit. This is the

A. business entity concept B. dual aspect concept C. realisation concept D. going concern concept

Question 6 of 50

A cash book with columns for discount, cash and bank is a

A. single-column cash book B. two-column cash book C. three-column cash book D. petty cash book

Question 7 of 50

A trial balance is prepared to

A. find the profit B. check the arithmetical accuracy of the ledger C. show the financial position D. record cash sales

Question 8 of 50

Depreciation is charged on

A. current assets B. non-current assets C. liabilities D. capital

Question 9 of 50

The book of original entry for credit purchases is the

A. sales journal B. purchases journal C. cash book D. general journal

Question 10 of 50

The concept that assumes a business will continue operating for the foreseeable future is the

A. going concern concept B. matching concept C. materiality concept D. realisation concept

Question 11 of 50

The concept that matches expenses to the revenue of the same period is the

A. accruals (matching) concept B. dual aspect concept C. money measurement concept D. cost concept

Question 12 of 50

When cash is paid to a supplier, the entry is

A. debit cash, credit supplier B. debit supplier, credit cash C. debit purchases, credit cash D. debit cash, credit purchases

Question 13 of 50

When goods are sold on credit to Kofi, the entry is

A. debit sales, credit Kofi B. debit Kofi, credit sales C. debit cash, credit sales D. debit Kofi, credit cash

Question 14 of 50

The book used to record the return of goods by customers is the

A. purchases returns day book B. sales returns (returns inwards) day book C. sales day book D. journal proper

Question 15 of 50

Which of the following is recorded in the journal proper?

A. credit sales B. cash received C. correction of errors D. credit purchases

Question 16 of 50

The prudence concept requires accountants to

A. overstate profits B. anticipate losses but not profits C. ignore losses D. value assets at selling price

Question 17 of 50

Which of these errors will NOT affect the agreement of the trial balance?

A. an error of omission B. a single-entry error C. an addition error in one account D. entering a debit as a credit in one account only

Question 18 of 50

Posting a payment for repairs to the motor vehicles account is an error of

A. commission B. principle C. omission D. original entry

Question 19 of 50

Carriage inwards is treated in the final accounts as part of

A. cost of sales B. selling expenses C. capital D. current liabilities

Question 20 of 50

Carriage outwards is shown in the income statement as

A. part of cost of sales B. a deduction from sales C. income D. an expense (selling and distribution)

Question 21 of 50

A machine costing GH₵ 10,000 has a residual value of GH₵ 2,000 and a useful life of 4 years. Find the annual depreciation by the straight-line method.

A. GH₵ 2,000 B. GH₵ 2,500 C. GH₵ 3,000 D. GH₵ 8,000

Question 22 of 50

The total of trade receivables is checked using the

A. purchases ledger control account B. cash book C. sales ledger control account D. trading account

Question 23 of 50

Bank charges shown on the bank statement but not in the cash book should be

A. ignored B. debited in the cash book C. credited in the cash book D. added to capital

Question 24 of 50

In the absence of a partnership agreement, the Partnership Act provides that profits are shared

A. in the capital ratio B. according to experience C. by age D. equally

Question 25 of 50

A statement of affairs is prepared to find the

A. bank balance B. gross profit C. capital of a business that keeps incomplete records D. value of inventory

Question 26 of 50

Bank charges shown on the bank statement but not yet in the cash book should be

A. debited in the cash book B. credited in the cash book C. ignored D. added to capital

Question 27 of 50

Annual demand is 1,000 units, the cost of placing an order is GH¢20 and the holding cost is GH¢4 per unit a year. What is the economic order quantity?

A. 50 units B. 100 units C. 200 units D. 10 units

Question 28 of 50

An accountant who audits work he prepared himself faces a

A. advocacy threat B. intimidation threat C. self-review threat D. familiarity threat

Question 29 of 50

Fixed costs are GH¢30,000, the selling price is GH¢50 per unit and the variable cost is GH¢30 per unit. What is the break-even point?

A. 1,500 units B. 600 units C. 1,000 units D. 3,000 units

Question 30 of 50

The owner takes goods for personal use. The entry is

A. debit sales, credit cash B. debit purchases, credit drawings C. debit capital, credit sales D. debit drawings, credit purchases

Question 31 of 50

Which error will cause the trial balance to disagree?

A. an error of omission B. entering an amount on the debit side of two accounts C. an error of principle D. a compensating error

Question 32 of 50

A machine costing GH¢10,000 is depreciated at 20% per year on the reducing balance. What is its value after 2 years?

A. GH¢6,400 B. GH¢6,000 C. GH¢8,000 D. GH¢4,000

Question 33 of 50

Interest on partners' drawings is

A. added to profit available for sharing B. deducted from profit C. a business expense D. a liability

Question 34 of 50

A dishonoured cheque from a customer is recorded in the cash book on the

A. credit side B. debit side C. both sides D. neither side

Question 35 of 50

A statement of affairs is used to find

A. capital when records are incomplete B. sales only C. cash in hand only D. the trial balance

Question 36 of 50

A vehicle costing GH₵ 20,000 is depreciated at 20% per year by the reducing balance method. Find the depreciation for the second year.

A. GH₵ 3,200 B. GH₵ 4,000 C. GH₵ 16,000 D. GH₵ 8,000

Question 37 of 50

Treating the purchase of a GH¢5 stapler as an expense rather than an asset follows the

A. realisation concept B. going concern concept C. entity concept D. materiality concept

Question 38 of 50

Trade discount is

A. debited to discount allowed B. not recorded in the ledger accounts C. credited to discount received D. treated as income

Question 39 of 50

Sales GH¢50,000; returns inwards GH¢2,000; cost of sales GH¢30,000. Gross profit is

A. GH¢22,000 B. GH¢20,000 C. GH¢18,000 D. GH¢16,000

Question 40 of 50

Capital at start GH¢20,000; net profit GH¢6,000; drawings GH¢2,500; additional capital GH¢1,000. Closing capital is

A. GH¢22,500 B. GH¢27,000 C. GH¢24,500 D. GH¢26,500

Question 41 of 50

Revaluing land upwards and crediting profit would breach the

A. consistency concept only B. prudence and realisation concepts C. entity concept D. dual aspect concept

Question 42 of 50

Goods worth GH¢500 taken by the owner for personal use are recorded by

A. debiting sales and crediting cash B. debiting purchases and crediting drawings C. debiting drawings and crediting purchases D. debiting capital and crediting sales

Question 43 of 50

A contra entry in a three-column cash book occurs when

A. discount is received B. goods are bought on credit C. a debtor pays by cheque D. cash is paid into the bank or withdrawn for office use

Question 44 of 50

Sales of GH¢300 to Kofi were posted to Kojo's account. The correcting entry is

A. debit sales, credit Kofi B. debit Kojo, credit Kofi C. debit Kofi, credit Kojo D. debit suspense, credit Kojo

Question 45 of 50

Purchases were undercast by GH¢100. The correction is

A. no entry B. debit suspense, credit purchases C. debit sales, credit purchases D. debit purchases, credit suspense

Question 46 of 50

Opening inventory GH¢4,000; purchases GH¢20,000; returns outwards GH¢1,000; carriage inwards GH¢500; closing inventory GH¢3,500. Cost of sales is

A. GH¢24,500 B. GH¢21,000 C. GH¢19,000 D. GH¢20,000

Question 47 of 50

Rent paid GH¢4,800 covers 16 months from 1 January. The rent expense for the year ended 31 December is

A. GH¢4,000 B. GH¢4,800 C. GH¢1,200 D. GH¢3,600

Question 48 of 50

Wages paid GH¢9,000; wages owing at the start GH¢500; at the end GH¢800. Wages charged to the income statement are

A. GH¢8,700 B. GH¢9,300 C. GH¢10,300 D. GH¢9,000

Question 49 of 50

A van costing GH¢30,000 is depreciated at 20% per annum on the reducing balance. Its net book value after 2 years is

A. GH¢12,000 B. GH¢18,000 C. GH¢24,000 D. GH¢19,200

Question 50 of 50

Receivables are GH¢40,000 and a provision for doubtful debts of 5% is required. The existing provision is GH¢1,500. The charge to the income statement is

A. GH¢2,000 B. GH¢500 C. GH¢1,500 D. GH¢3,500

Questions written by OtisamLMS in the style of the WASSCE. They are not WAEC past questions.