WAEC GCE 2018 Financial Accounting (Obj & Essay) Answer – Nov/Dec Expo
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FINANCIAL ACCOUNT
SECTION A
ANSWER TWO QUESTION
1a)
(i) to satisfy the legal regulatory requirements
(ii) to provide reliable financial information about economic resources and obligations of an organization
(iii) to provide reliable information about changes in capital of an organization
1b)
– Relevant Information
– Understandable Information
– Unbrased Information
(i)Relevant Information:- accounting information should be relevant to the need of the users so that it can help them to evaluate the financial performance of the business and to draw conclusion from it
(ii) Understandable Information:- the information should be in a firm which is understandable by external users, so that it is free from biased
(iii) Unbiased Information:- accounting information should be free from systematics or dislibrate bias towards the needs of the user, it should be objective
1c)
(I) owners/shareholders
(ii) Management
(iii) Customers
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3)
Goodwill is the benefit and advantage arising from the good mame reputation, position and connection of a business which enable it to earn more profit than normally expected on the capital employed in the business
3b)
(i) Admission of a new partner
(ii) Dissolution of partnership
(iii) Change in profit sharing ratio
3c)
(i) The amount of capital to be contributed by each partner
(ii) No interest on drawing
(iii) No partner is entitled to salary or other remuneration
(iv) Profit and losses to be shared equally
(v) No people may be introduced as A partner without the consent if all existing partner
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