WAEC GCE Financial Accounting Practice Questions and Answers 2025 (Private Candidates)

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Financial Accounting is one of the core subjects in the WAEC GCE examination for private candidates. Whether you’re writing to gain university admission or improve your qualifications, thorough preparation is crucial.

WAEC GCE Financial Accounting Practice Questions and Answers 2025 (Private Candidates)This guide provides WAEC GCE Financial Accounting practice questions and answers for 2025. It includes both multiple-choice (objective) and theory questions modeled to reflect the real WAEC GCE exam pattern.

WAEC GCE FINANCIAL ACCOUNTING 2025 PRACTICE QUESTIONS AND ANSWERS

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SECTION A: Objective Financial Accounting Questions (Choose the correct answer)WAEC GCE FINANCIAL ACCOUNTING 2025 PRACTICE QUESTIONS AND ANSWERS

1. Which of the following is a liability?
A. Building
B. Capital
C. Loan from bank
D. Furniture

Answer: C

Explanation:
A liability is an amount the business owes to outsiders. Loan from a bank is a liability.

2. The accounting equation is:
A. Assets = Liabilities − Capital
B. Capital = Assets + Liabilities
C. Assets = Liabilities + Capital
D. Assets + Liabilities = Capital

Answer: C

3. Which document is used to record the details of a credit sale?
A. Receipt
B. Invoice
C. Debit Note
D. Credit Note

Answer: B

4. A trial balance is prepared to:
A. Detect fraud
B. Check arithmetic accuracy
C. Calculate net profit
D. Record transactions

Answer: B

5. Which of these is an intangible asset?
A. Goodwill
B. Inventory
C. Equipment
D. Buildings

Answer: A

6. Which of the following is not part of the final accounts?
A. Trading Account
B. Profit and Loss Account
C. Balance Sheet
D. Ledger

Answer: D

7. The double entry for receiving cash from a debtor is:
A. Debit cash, credit debtor
B. Debit debtor, credit cash
C. Debit sales, credit cash
D. Debit capital, credit sales

Answer: A

8. The accounting year is also called:
A. Capital period
B. Financial period
C. Trial period
D. Ledger period

Answer: B

9. Which of these is used to correct an error in recording transactions?
A. Credit note
B. Journal proper
C. Ledger
D. Sales day book

Answer: B

10. If rent paid in advance is ₦5,000, how is it treated?
A. Expense
B. Liability
C. Asset
D. Capital

Answer: C

SECTION B: WAEC GCE Financial Accounting Theory Questions

1. Define depreciation and state two causes.

Answer:
Depreciation is the reduction in the value of an asset over time due to usage, wear and tear, or obsolescence.

Causes of Depreciation:

  • Wear and tear from usage

  • Passage of time

2. List and explain four types of errors in accounting.

Answer:

  1. Error of Omission: A transaction is completely left out.

  2. Error of Commission: Wrong amount recorded or entry made in the wrong account.

  3. Error of Principle: Recording a transaction against accounting principles, e.g., treating capital expenditure as revenue expenditure.

  4. Compensating Error: Two errors cancel each other out.

3. State three differences between capital and revenue expenditure.

Capital Expenditure Revenue Expenditure
Long-term benefit Short-term benefit
Buying fixed assets Daily running costs
Recorded as an asset Recorded as an expense

4. What are the uses of a balance sheet?

Answer:

  • Shows the financial position of a business at a specific date.

  • Lists assets, liabilities, and capital.

  • Helps assess business solvency.

  • Used to attract investors or loans.

5. Explain the term “petty cash” and state two advantages of using it.

Answer:
Petty cash is a small amount of cash kept on hand for minor expenses.

Advantages:

  • Reduces the need to write cheques for small amounts.

  • Saves time in handling minor payments.

WAEC GCE Financial Accounting Practice Essay Sample

Question: Explain five qualities of a good financial accountant.

Answer:

  1. Accuracy: A good accountant must be precise and careful when recording transactions.

  2. Integrity: Must be honest and maintain confidentiality.

  3. Analytical Skill: Ability to interpret financial information.

  4. Knowledgeable: Well-versed in accounting principles and standards.

  5. Organized: Keeps records in an orderly and retrievable format.

Key Accounting Formulas and Definitions

  • Accounting Equation:
    Assets = Liabilities + Capital

  • Gross Profit:
    Sales − Cost of Goods Sold

  • Net Profit:
    Gross Profit − Expenses

  • Depreciation (Straight Line Method):
    (Cost − Scrap Value) ÷ Useful Life

  • Balance Sheet Format:

Assets Liabilities
Cash, Stock, Equipment Loans, Creditors

Important WAEC GCE Accounting Exam Tips

  • Understand all definitions: depreciation, asset, liability, revenue, expense.

  • Practice writing up ledgers and trial balances.

  • Familiarize yourself with accounting documents like invoices and credit notes.

  • Know common accounting errors and how to correct them.

  • Work through past WAEC GCE papers regularly.

  • VISIT WAEC OFFICAIL WEBSITE HERE; https://www.waecnigeria.org/

Disclaimer

This content is written strictly for educational and revision purposes. It complies with Google AdSense policies and WAEC regulations. No part of this content promotes exam malpractice or contains leaked questions. Students are encouraged to use this material as a study aid.

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