WAEC Financial Accounting 2022 past questions

Checked by the Skolra question team · Last updated 15 October 2026

Ten questions from the 2022 WAEC Financial Accounting paper, with answers and explanations. We hold 50 questions from this paper, and the Skolra app has all of them.

WAEC Financial Accounting 2022 questions and answers

1. 1.

   Adiza gave an instruction to her banker to pay a premium of Le 30,000 from her account to Union Rock Insurance on a quarterly basis for a policy. This instruction is an example of

   1. A
      Letter of credit
   2. B
      Direct debit
   3. C
      Banker's draft
   4. D
      Standing order
      Correct
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   Answer: D

   A standing order is an instruction given by the account holder to the bank to pay a fixed amount at regular intervals to a named payee. A direct debit is initiated by the payee, not the account holder.

2. 2.

   The entries for cash drawn from the bank by a proprietor for the private use is: debit

   1. A
      Capital account
   2. B
      Cash account
   3. C
      Expenses account
   4. D
      Drawings account
      Correct
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   Answer: D

   When a proprietor withdraws cash from the bank for personal use, the Drawings account is debited (increasing drawings) and the Bank account is credited. Drawings reduce the owner's capital at the end of the period.

3. 3.

   A unit of a company capital is?

   1. A
      Stock certificate
   2. B
      Bond
   3. C
      Debenture
   4. D
      Share
      Correct
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   Answer: D

   A share is the basic unit into which a company's capital is divided. Shareholders are part-owners of the company. Debentures and bonds are forms of loan capital, not equity units.

4. 4.

   An item that would be considered a first charge against profit in a company's account is

   1. A
      Preference dividend
   2. B
      Debenture interest
      Correct
   3. C
      Corporation tax
   4. D
      Ordinary dividend
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   Answer: B

   Debenture interest is a first charge against profit in a company's accounts. It must be paid to debenture holders before any other appropriations — before corporation tax, preference dividends, or ordinary dividends are considered. This is because debenture holders are creditors, not owners, and their interest is a legal obligation.

5. 5.

   Items shown in the balance sheet as asset includes

   1. A
      Bank overdraft
   2. B
      Prepayments
      Correct
   3. C
      Accrued expenses
   4. D
      Creditors
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   Answer: B

   Prepayments are amounts paid in advance for expenses not yet incurred; they represent a future economic benefit and are classified as current assets in the balance sheet. Creditors, bank overdraft, and accrued expenses are all liabilities.

6. 6.

   A set of rules and procedures guiding the operations of a partnership is called partnership

   1. A
      Deed
      Correct
   2. B
      Memorandum
   3. C
      Contract
   4. D
      Articles
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   Answer: A

   A Partnership Deed (also called a partnership agreement) is the legal document that contains the rules, rights, duties, and obligations governing the relationship and operations of partners in a partnership business.

7. 7.

   An item that would be classified as preliminary expenses in a company's account is

   1. A
      Office furniture purchased at incorporation
   2. B
      Staff recruitment costs
   3. C
      Annual advertising expenditure
   4. D
      Legal fees for company formation
      Correct
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   Answer: D

   Preliminary expenses are costs incurred before or during the formation of a company, such as legal fees for drafting the memorandum and articles of association, registration fees, and the cost of printing the prospectus.

8. 8.

   In the balance sheet of not-for-profit making organizations, subscription in arrears is shown under

   1. A
      Current assets
      Correct
   2. B
      Long-term liabilities
   3. C
      Current liabilities
   4. D
      Accumulated fund
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   Answer: A

   Subscription in arrears represents amounts owed to the club by members for the current period. It is a debt owed to the organization and is therefore a current asset in the balance sheet, similar to debtors in a trading concern.

9. 9.

   The document prepared by the buyer and sent to the seller listing the items to be supplied is

   1. A
      Credit note
   2. B
      Invoice
   3. C
      Purchase order
      Correct
   4. D
      Delivery note
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   Answer: C

   A purchase order is prepared by the buyer and sent to the seller specifying the goods or services required. An invoice is prepared by the seller; a delivery note accompanies goods dispatched; a credit note reduces a buyer's debt.

10. 10.

    One of the items on the debit side of sales ledger control account is

    1. A
       Returns inwards
    2. B
       Bad debts written off
    3. C
       Credit sales
       Correct
    4. D
       Discount allowed
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    Answer: C

    The debit side of the Sales Ledger Control Account (Debtors Control Account) records amounts that increase what customers owe, chiefly credit sales. Returns inwards, discount allowed, and bad debts all reduce debtors and appear on the credit side.

The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check

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Practise all 50 questions we hold from the 2022 paper, on a timed CBT screen

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