Financial Accounting Mock 2025

WASSCE style · Exam mode

Financial Accounting Mock 2025

Question 1 of 50

Gross profit is calculated as

A. sales − cost of sales B. sales − expenses C. capital − drawings D. assets − liabilities

Question 2 of 50

Which of the following is a non-current asset?

A. inventory B. trade receivables C. motor vehicles D. cash at bank

Question 3 of 50

Which of the following is a current liability?

A. bank loan repayable in 10 years B. land C. capital D. trade payables

Question 4 of 50

A debt that cannot be collected and is written off is

A. a bad debt B. a provision for discount C. a prepayment D. an accrual

Question 5 of 50

Ordinary shareholders of a company receive a share of profits called

A. interest B. rent C. wages D. dividend

Question 6 of 50

A business has assets of GH¢50,000 and liabilities of GH¢15,000. What is its capital?

A. GH¢65,000 B. GH¢35,000 C. GH¢15,000 D. GH¢50,000

Question 7 of 50

Credit sales are first recorded in the

A. journal proper B. purchases day book C. cash book D. sales day book

Question 8 of 50

Sales are GH¢30,000 and cost of sales is GH¢22,000. What is the gross profit?

A. GH¢30,000 B. GH¢52,000 C. GH¢22,000 D. GH¢8,000

Question 9 of 50

The concept that treats the business as separate from its owner is the

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

Question 10 of 50

The petty cash system in which the cashier is given a fixed float that is restored at the end of each period is the

A. imprest system B. ledger system C. control account system D. suspense system

Question 11 of 50

Discount allowed is

A. an income to the business B. an expense to the business C. a liability D. an asset

Question 12 of 50

When a trial balance does not agree, the difference is placed temporarily in a

A. capital account B. suspense account C. drawings account D. sales account

Question 13 of 50

Cost of sales = opening inventory + purchases − closing inventory. If opening inventory is GH₵ 2,000, purchases GH₵ 8,000 and closing inventory GH₵ 3,000, find cost of sales.

A. GH₵ 3,000 B. GH₵ 13,000 C. GH₵ 10,000 D. GH₵ 7,000

Question 14 of 50

Rent of GH₵ 1,200 is due for the year, but only GH₵ 900 has been paid. The GH₵ 300 is

A. a prepayment B. income received in advance C. an accrual D. drawings

Question 15 of 50

Insurance paid in advance for next year is shown in the statement of financial position as

A. a current liability B. capital C. a non-current asset D. a current asset (prepayment)

Question 16 of 50

Cheques sent to suppliers but not yet presented to the bank are called

A. dishonoured cheques B. standing orders C. uncredited cheques D. unpresented cheques

Question 17 of 50

The excess of income over expenditure in a club's accounts is called

A. net profit B. gross profit C. surplus D. capital

Question 18 of 50

The receipts and payments account of a club is a summary of its

A. income and expenditure B. profits C. assets and liabilities D. cash and bank transactions

Question 19 of 50

Goods bought on credit from Mensah are recorded by

A. debiting cash and crediting Mensah B. debiting Mensah and crediting purchases C. debiting purchases and crediting Mensah D. debiting purchases and crediting cash

Question 20 of 50

A petty cash book kept on the imprest system is

A. never balanced B. topped up to the same float at the end of each period C. used for large payments only D. kept by the bank

Question 21 of 50

Opening inventory is GH¢5,000, purchases GH¢20,000 and closing inventory GH¢3,000. What is the cost of sales?

A. GH¢18,000 B. GH¢28,000 C. GH¢22,000 D. GH¢25,000

Question 22 of 50

A machine costs GH¢12,000, has a residual value of GH¢2,000 and a life of 5 years. What is the yearly straight-line depreciation?

A. GH¢2,400 B. GH¢2,000 C. GH¢2,800 D. GH¢10,000

Question 23 of 50

In a statement of financial position, a bank overdraft is shown as

A. a current asset B. a non-current asset C. a current liability D. capital

Question 24 of 50

Recording income and expenses in the period they relate to, not when cash changes hands, follows the

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

Question 25 of 50

The concept that tells accountants not to overstate assets or profits is

A. materiality B. going concern C. prudence D. entity

Question 26 of 50

Assuming a business will continue to operate in the foreseeable future is the

A. accruals concept B. consistency concept C. historical cost concept D. going concern concept

Question 27 of 50

A transaction left out of the books entirely is an error of

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

Question 28 of 50

Cheques sent to suppliers but not yet presented to the bank are

A. standing orders B. uncredited lodgements C. dishonoured cheques D. unpresented cheques

Question 29 of 50

Interest on drawings is

A. charged to partners and added to profit available B. paid to partners C. an expense D. a liability

Question 30 of 50

A machine costing GH¢20,000 is depreciated at 10% per annum on the reducing balance. The depreciation in year 2 is

A. GH¢1,620 B. GH¢2,000 C. GH¢1,800 D. GH¢3,800

Question 31 of 50

Credit sales can be found from incomplete records using

A. the total receivables (debtors) account B. the capital account C. the cash account only D. the depreciation account

Question 32 of 50

A suspense account balance of GH¢200 debit means the trial balance

A. credit side was short by GH¢200 B. debit side was short by GH¢200 C. agreed D. had no errors

Question 33 of 50

Life membership fees are usually

A. credited to a special fund and spread over years B. treated as current income in full C. ignored D. treated as expenses

Question 34 of 50

A company has 50,000 ordinary shares and declares a dividend of GH¢0.20 per share. Total dividend is

A. GH¢50,000 B. GH¢2,500 C. GH¢10,000 D. GH¢1,000

Question 35 of 50

A business with capital GH¢40,000 and liabilities GH¢15,000 has total assets of

A. GH¢25,000 B. GH¢55,000 C. GH¢40,000 D. GH¢15,000

Question 36 of 50

In the purchases ledger control account, discounts received appear on the

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

Question 37 of 50

A bad debt previously written off is recovered. The double entry includes crediting

A. sales account B. bad debts recovered account C. capital account D. purchases account

Question 38 of 50

A company issues 10,000 shares of GH¢1 at GH¢1.50. The share premium is

A. GH¢10,000 B. GH¢15,000 C. GH¢5,000 D. GH¢1,500

Question 39 of 50

A gearing ratio above 50% indicates that a company

A. relies heavily on borrowed funds B. has no debt C. is very liquid D. has high inventory

Question 40 of 50

A machine bought for GH¢12,000 with accumulated depreciation of GH¢7,000 is sold for GH¢4,000. The result is

A. a loss of GH¢8,000 B. a profit of GH¢1,000 C. a loss of GH¢1,000 D. a profit of GH¢4,000

Question 41 of 50

The cash book shows GH¢2,500 debit. Unpresented cheques are GH¢800 and uncredited deposits GH¢600. The bank statement balance is

A. GH¢3,900 B. GH¢2,300 C. GH¢2,700 D. GH¢1,100

Question 42 of 50

A cheque for GH¢150 paid to a supplier was recorded in the cash book as GH¢510. The cash book adjustment is

A. credit GH¢150 B. credit GH¢360 C. debit GH¢510 D. debit GH¢360

Question 43 of 50

A and B share profits 3 : 2 after A's salary of GH¢4,000. Net profit is GH¢24,000. A's total share is

A. GH¢12,000 B. GH¢16,000 C. GH¢14,400 D. GH¢18,000

Question 44 of 50

Opening capital GH¢15,000; closing capital GH¢22,000; drawings GH¢3,000; no new capital. Profit is

A. GH¢4,000 B. GH¢7,000 C. GH¢10,000 D. GH¢25,000

Question 45 of 50

Subscriptions received GH¢6,000 include GH¢400 for next year and GH¢300 owing from last year. Subscriptions income for the year is

A. GH¢6,700 B. GH¢5,300 C. GH¢5,700 D. GH¢6,000

Question 46 of 50

A club's opening accumulated fund is GH¢8,000; surplus GH¢2,500; life subscriptions capitalised GH¢500. The closing accumulated fund is

A. GH¢11,000 B. GH¢10,500 C. GH¢8,000 D. GH¢5,000

Question 47 of 50

Mark-up of 25% on cost is equivalent to a margin on sales of

A. 20% B. 25% C. 33⅓% D. 15%

Question 48 of 50

Cost of sales GH¢24,000 and margin 20%. Sales were

A. GH¢30,000 B. GH¢28,800 C. GH¢19,200 D. GH¢26,000

Question 49 of 50

Current assets GH¢30,000 (inventory GH¢12,000); current liabilities GH¢15,000. The acid test ratio is

A. 1.2 : 1 B. 2 : 1 C. 0.8 : 1 D. 3 : 1

Question 50 of 50

Credit sales GH¢120,000; average receivables GH¢20,000. The receivables collection period is about

A. 61 days B. 6 days C. 30 days D. 120 days

Time left

60:00

Answered0 / 50

Unanswered questions count as wrong.

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