WAEC Financial Accounting 2023 past questions

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

Ten questions from the 2023 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 2023 questions and answers

1. 1.

   Reliability as a quality of accounting information means that accounting

   1. A
      information is presented in a consistent manner
   2. B
      information is relevant to users' decisions
   3. C
      information is free from material error and bias
      Correct
   4. D
      information is easily understood by all users
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   Answer: C

   Reliability means that accounting information faithfully represents what it purports to represent and is free from material error, bias, or undue influence. Users can depend on it to make informed decisions.

2. 2.The source of funds available to a local government/district assembly includes
   1. A
      debenture issues
   2. B
      grants, rates, and levies
      Correct
   3. C
      proceeds from sale of shares
   4. D
      retained earnings
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   Answer: B

   Local governments obtain funds from government grants, property rates, local levies, fines, and fees. Shares, debentures, and retained earnings are sources of funds for companies, not local government bodies.

3. 3.

   Which of the following items is found in the profit and loss account of a company?

   1. A
      Gross profit on trading
   2. B
      Audit fees
      Correct
   3. C
      Cost of goods sold
   4. D
      Dividends paid to shareholders
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   Answer: B

   Audit fees are an administrative expense and appear in the profit and loss account. Gross profit and cost of goods sold belong in the trading account. Dividends paid are an appropriation of profit shown in the appropriation account, not the profit and loss account.

4. 4.

   Profit distributed to ordinary shareholders of a limited liability company is

   1. A
      dividend
      Correct
   2. B
      bonus
   3. C
      interest
   4. D
      commission
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   Answer: A

   Profits distributed to ordinary shareholders are called dividends. Interest is paid on loans and debentures, not on share capital.

5. 5.

   The accounting concept which is the basis upon which assets of a business are valued is the

   1. A
      matching concept
   2. B
      going concern concept
   3. C
      prudence concept
   4. D
      historical cost concept
      Correct
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   Answer: D

   The historical cost concept requires that assets be recorded and valued at their original purchase price (cost). This is the fundamental basis for asset valuation in traditional accounting.

6. 6.

   Which of the following items are apportioned on the basis of purchases in preparing departmental accounts?

   1. A
      Carriage outwards
   2. B
      Advertising expenses
   3. C
      Rent and rates
   4. D
      Carriage inwards
      Correct
   Show answerHide answer

   Answer: D

   In departmental accounts, carriage inwards (freight costs on goods bought) is apportioned to departments on the basis of purchases, since it is directly related to the cost of goods acquired by each department. Other expenses such as rent are apportioned on floor area and advertising on sales.

7. 7.

   Which of the following rules is applicable in the absence of a partnership agreement? Interest is payable

   1. A
      On loans to the firm at 5% per annum
      Correct
   2. B
      On drawings at 5% per annum
   3. C
      On capital at any rate partners agree
   4. D
      On capital at 5% per annum
   Show answerHide answer

   Answer: A

   Under the Partnership Act, in the absence of a partnership agreement, no interest is allowed on capital and no interest is charged on drawings. However, if a partner makes a loan to the firm beyond their agreed capital, interest at 5% per annum is payable on that loan.

8. 8.

   The two column cash book records

   1. A
      Bank and discount transactions
   2. B
      Cash and bank transactions
      Correct
   3. C
      Petty cash and main cash transactions
   4. D
      Cash and discount transactions
   Show answerHide answer

   Answer: B

   The two-column cash book has two money columns on each side — one for cash transactions and one for bank transactions. The three-column cash book adds a third column for discounts. Therefore the two-column cash book records both cash and bank transactions.

9. 9.

   A business should not lay claim to any profit before it is earned. This is in accordance with the

   1. A
      Prudence concept
      Correct
   2. B
      Materiality concept
   3. C
      Consistency concept
   4. D
      Going concern concept
   Show answerHide answer

   Answer: A

   The prudence (conservatism) concept states that profits should not be anticipated or recognised until they are actually earned/realised. A business must not lay claim to any profit before it is earned. Losses, however, are recognised as soon as they become likely. This ensures that financial statements do not overstate profits.

10. 10.

    The purchase day book is used to record

    1. A
       credit purchases of fixed assets
    2. B
       cash purchases of goods
    3. C
       cash purchases of fixed assets
    4. D
       credit purchases of goods
       Correct
    Show answerHide answer

    Answer: D

    The purchase day book (purchases journal) records only credit purchases of goods for resale. Cash purchases are recorded in the cash book, and asset purchases are recorded separately.

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

Spotted a wrong answer? Tell us from the app or on the contact page and we check it.

Practise all 50 questions we hold from the 2023 paper, on a timed CBT screen

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