waec model questions vol1 2025 financial_accounting | Objective

Are you preparing for waec model questions vol1 exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 financial_accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company has total assets of ₦500,000 and total liabilities of ₦300,000. If the company decides to issue additional shares worth ₦100,000, what will be the new equity of the company?
A. ₦400,000
B. ₦200,000
Correct C. ₦300,000
D. ₦500,000

Correct Answer: C

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Question 2
A machine purchased for ₦120,000 has a useful life of 5 years and a residual value of ₦20,000. If the company uses the straight-line method of depreciation, what will be the annual depreciation expense?
A. ₦30,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 3
A cash book shows total cash receipts of ₦150,000 and total cash payments of ₦90,000. If the opening balance was ₦30,000, what is the closing balance in the cash book?
A. ₦70,000
B. ₦80,000
Correct C. ₦90,000
D. ₦100,000

Correct Answer: C

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Question 4
A trial balance shows total debits of ₦250,000 and total credits of ₦240,000. If an error of ₦5,000 was found in the credit side, what is the adjusted total for the trial balance?
A. ₦240,000
Correct B. ₦245,000
C. ₦235,000
D. ₦250,000

Correct Answer: B

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Question 5
A company reports sales of ₦1,000,000 and cost of goods sold of ₦600,000. If the company has operating expenses of ₦200,000, what is the net profit for the company?
A. ₦100,000
B. ₦300,000
C. ₦400,000
Correct D. ₦200,000

Correct Answer: D

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Question 6
A company has the following balances in its ledger accounts: Cash Account: ₦15,000, Accounts Receivable: ₦8,000, Accounts Payable: ₦5,000, and Inventory: ₦10,000. If the company decides to pay off ₦3,000 of its Accounts Payable, what will be the new balance of the Cash Account after this transaction?
A. ₦15,000
B. ₦9,000
Correct C. ₦12,000
D. ₦10,000

Correct Answer: C

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Question 7
A business recorded the following transactions in its books of original entry: Sales of ₦20,000, Purchases of ₦12,000, and Expenses of ₦5,000. If the business uses a single entry system, what will be the net income recorded in the income statement?
A. ₦1,000
Correct B. ₦3,000
C. ₦5,000
D. ₦7,000

Correct Answer: B

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Question 8
A company has the following balances in its ledger accounts: Equipment: ₦50,000, Accumulated Depreciation: ₦10,000, and Accounts Payable: ₦15,000. If the company sells the equipment for ₦45,000, what will be the effect on the net assets of the company after accounting for the sale?
Correct A. ₦5,000
B. ₦10,000
C. ₦20,000
D. ₦15,000

Correct Answer: A

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Question 9
Which of the following accounting concepts states that a business should continue its operations indefinitely unless there is evidence to the contrary?
A. Revenue Recognition
B. Matching Principle
C. Accrual Basis
Correct D. Going Concern

Correct Answer: D

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Question 10
A cash book shows the following transactions: Cash sales of ₦10,000, Cash purchases of ₦4,000, and Cash expenses of ₦2,000. What is the closing balance of the cash book at the end of the period?
A. ₦2,000
B. ₦6,000
Correct C. ₦4,000
D. ₦8,000

Correct Answer: C

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Question 11
A company discovered that it had overestimated its expenses by ₦15,000 in the previous accounting period. This error was not corrected in the financial statements. If the company's net profit before tax was ₦200,000, what would the corrected net profit be after adjusting for this error?
Correct A. ₦215,000
B. ₦210,000
C. ₦205,000
D. ₦220,000

Correct Answer: A

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Question 12
A company has total assets of ₦500,000 and total liabilities of ₦300,000. If the company issues new shares worth ₦50,000, what will be the new equity of the company?
Correct A. ₦250,000
B. ₦200,000
C. ₦300,000
D. ₦275,000

Correct Answer: A

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Question 13
A manufacturing company has the following costs: Direct materials cost ₦120,000, Direct labor cost ₦80,000, and Manufacturing overheads of ₦50,000. If the company produced 10,000 units, what is the cost per unit of production?
A. ₦30
Correct B. ₦25
C. ₦20
D. ₦35

Correct Answer: B

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Question 14
A bank reconciliation statement shows that the bank balance as per the cash book is ₦45,000, while the bank statement shows a balance of ₦50,000. If there are outstanding cheques of ₦10,000 and deposits in transit of ₦5,000, what is the adjusted bank balance as per the cash book?
Correct A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦35,000

Correct Answer: A

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Question 15
In a partnership, Partner A invested ₦60,000 and Partner B invested ₦40,000. If the profit for the year is ₦50,000 and the partners agree to share profits in the ratio of their investments, how much will Partner A receive?
A. ₦40,000
Correct B. ₦30,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 16
A company reported a net profit of ₦150,000 for the year. During the year, it had total revenue of ₦600,000 and total expenses of ₦450,000. If the company decides to distribute 40% of its net profit as dividends to shareholders, how much will be retained in the business?
A. ₦60,000
Correct B. ₦90,000
C. ₦120,000
D. ₦150,000

Correct Answer: B

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Question 17
A business has total assets of ₦1,200,000 and total liabilities of ₦800,000. If the owner decides to withdraw ₦100,000 from the business, what will be the new owner's equity after the withdrawal?
Correct A. ₦300,000
B. ₦500,000
C. ₦200,000
D. ₦400,000

Correct Answer: A

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Question 18
A sole trader has the following transactions: Cash sales of ₦50,000, credit sales of ₦30,000, and cash purchases of ₦20,000. What is the total revenue recognized in the accounting records?
A. ₦90,000
B. ₦60,000
Correct C. ₦80,000
D. ₦70,000

Correct Answer: C

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Question 19
A business has incomplete records and the following information is available: Opening capital is ₦200,000, closing capital is ₦300,000, and drawings during the year are ₦50,000. Calculate the profit or loss for the year.
A. ₦250,000
Correct B. ₦150,000
C. ₦200,000
D. ₦100,000

Correct Answer: B

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Question 20
In a partnership, Partner A has a capital contribution of ₦120,000 and Partner B has a capital contribution of ₦80,000. If the partnership agreement states that profits are to be shared in the ratio of their capital contributions, what will be Partner A's share of a total profit of ₦60,000?
A. ₦30,000
Correct B. ₦36,000
C. ₦42,000
D. ₦24,000

Correct Answer: B

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Question 21
A manufacturing company produces two products, A and B. The total cost of producing 100 units of product A is ₦500,000, while the total cost of producing 200 units of product B is ₦600,000. If the company decides to increase production of product A by 20% and product B by 10%, calculate the new total cost of production for both products combined. Assume that the cost per unit remains constant.
Correct A. ₦1,260,000
B. ₦1,500,000
C. ₦1,100,000
D. ₦1,200,000

Correct Answer: A

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Question 22
In a partnership, Partner X invested ₦300,000 and Partner Y invested ₦200,000. After one year, the total profit earned by the partnership was ₦100,000. If the profit is distributed in the ratio of their investments, how much profit will each partner receive?
A. X: ₦70,000, Y: ₦30,000
B. X: ₦80,000, Y: ₦20,000
Correct C. X: ₦60,000, Y: ₦40,000
D. X: ₦50,000, Y: ₦50,000

Correct Answer: C

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Question 23
A company has a control account showing a balance of ₦150,000. During the month, it recorded sales of ₦80,000, returns of ₦10,000, and cash received from debtors of ₦50,000. If the control account is reconciled, what will be the new balance?
A. ₦300,000
Correct B. ₦270,000
C. ₦250,000
D. ₦220,000

Correct Answer: B

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Question 24
A business has incomplete records and the following information is available: Opening capital is ₦200,000, closing capital is ₦300,000, and drawings during the year amount to ₦50,000. Calculate the profit or loss for the year.
A. ₦200,000
B. ₦250,000
C. ₦100,000
Correct D. ₦150,000

Correct Answer: D

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Question 25
A trial balance shows total debits of ₦500,000 and total credits of ₦480,000. If the difference is due to an error in recording, what is the amount of the error, and how should it be treated in the financial statements?
A. ₦10,000; adjust accounts accordingly
B. ₦30,000; adjust accounts accordingly
C. ₦50,000; adjust accounts accordingly
Correct D. ₦20,000; adjust accounts accordingly

Correct Answer: D

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