WASSCE 2023: Likely Financial Accounting Questions

Let’s take a look at these likely Financial Accounting questions for the 2023 WASSCE. Candidates are advised to solve all the questions listed below.

1. Which method of depreciation would you recommend for the following and why?

a. Freehold Land

b. Mines

c. Mines

d. Patents

e. Plant and Machinery

2. The following are common fallacies associated with depreciation. Explain why these statements are incorrect

i. Depreciation should be provided out of profits

ii. It is not necessary to make a charge for depreciation in accounts so long as the asset is kept in good condition

iii. Provision for depreciation provides cash for the replacement of an asset

iv. Depreciation should provide for obsolescence

b. What advantage does a straight line method of depreciation have over the other methods

3. (a)What is a suspense account?

(b) Explain five errors that would not affect the agreement of the Trial balance.

(c) Mention a class of account that would always show:
(i) debit balance;
(ii) credit balance

4. (a) State two ratios which fall under the following classification of accounting ratios:
(i) profitability;
(ii) activity;
(iii)liquidity;
(iv) investment;
(v) leverage

(b) Outline:
(i) three uses of accounting ratios;
(ii) two limitations in the use of accounting ratios.

Principles Of Cost Accounting Final Projected Topics

5.(a) What is a manufacturing account?

(b) Explain the following terms:
(i) prime cost;
(ii) factory overheads;
(iii) work-in-progress;
(iv) cost of goods transferred;
(v) finished goods;
(vi) profit on manufacturing.

5. For each of the underlisted errors, identify the type of error and explain its effect on the trial balance

i. Purchase of consumables poster to the purchase account

ii. Weekly total discount allowed to debtors from the debit side of the cash book posted to the credit side of the discount allowed account

iii. An invoice amount incorrectly copied to the purchase day book

iv. Return outwards for the week posted to the personal account only

6. Explain the following terms as they are used in contract accounts:

(a) Notional profit;
(b) Retention money;
(c) Progress payments;
(d) Work certified;
(e) Work-in-progress