WAEC 2026 Financial Accounting Questions and Answers – May/June (OBJ & Essay)
Preparing for the WAEC 2026 Financial Accounting examination requires a solid understanding of accounting principles, concepts, and practical applications. This guide on WAEC 2026 Financial Accounting Questions and Answers – May/June is designed to help students revise effectively by providing likely objective and essay questions with accurate answers. Study carefully and practice consistently to boost your chances of success.
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WAEC 2026 Financial Accounting Questions and Answers – May/June OBJ & Essay SECTION A: OBJECTIVE QUESTIONS (20)
1. The book used to record daily transactions is called
A. Ledger
B. Journal
C. Trial balance
D. Cash book
Answer: B
2. Which of the following is a real account?
A. Capital
B. Debtors
C. Furniture
D. Sales
Answer: C
3. Double entry principle means
A. One debit entry
B. One credit entry
C. Two entries for every transaction
D. No entry
Answer: C
4. The accounting equation is
A. Assets = Liabilities – Capital
B. Assets = Liabilities + Capital
C. Capital = Assets + Liabilities
D. Assets = Capital – Liabilities
Answer: B
5. Purchases returns are recorded in
A. Sales book
B. Purchases book
C. Returns outward book
D. Returns inward book
Answer: C
6. Which document shows financial position?
A. Trading account
B. Profit and loss account
C. Balance sheet
D. Cash book
Answer: C
7. Depreciation is
A. Increase in value
B. Reduction in asset value
C. Loss of cash
D. Profit earned
Answer: B
8. Bank reconciliation statement is prepared to
A. Detect fraud
B. Correct errors
C. Reconcile cash book with bank statement
D. Prepare ledger
Answer: C
9. Capital introduced by owner is
A. Liability
B. Expense
C. Asset
D. Income
Answer: A
10. Bad debts are
A. Income
B. Expenses
C. Assets
D. Liabilities
Answer: B
11. Which account is debited when cash is received?
A. Cash
B. Capital
C. Sales
D. Purchases
Answer: A
12. A trial balance checks
A. Accuracy of ledger
B. Profit
C. Loss
D. Expenses
Answer: A
13. Discount allowed is
A. Income
B. Expense
C. Liability
D. Asset
Answer: B
14. Which is a current asset?
A. Building
B. Machinery
C. Cash
D. Motor vehicle
Answer: C
15. Drawings reduce
A. Assets
B. Capital
C. Liability
D. Profit
Answer: B
16. Sales returns are also called
A. Returns inward
B. Returns outward
C. Purchases
D. Discounts
Answer: A
17. The ledger is also known as
A. Principal book
B. Secondary book
C. Day book
D. Journal
Answer: A
18. Which is not an expense?
A. Rent
B. Wages
C. Salary
D. Capital
Answer: D
19. Accrual concept deals with
A. Cash basis
B. Matching income and expenses
C. Payment system
D. Assets only
Answer: B
20. Goodwill is
A. Tangible asset
B. Intangible asset
C. Liability
D. Expense
Answer: B
WAEC 2026 Financial Accounting Questions and Answers – May/June OBJ & Essay SECTION B: ESSAY QUESTIONS AND ANSWERS (20)
1. Define Financial Accounting.
Answer: Financial accounting is the process of recording, classifying, summarizing, and reporting financial transactions of a business.
2. State the accounting equation.
Answer: Assets = Liabilities + Capital
3. Explain double entry system.
Answer: It is a system where every transaction affects two accounts—one debit and one credit.
4. List three books of original entry.
Answer:
- Journal
- Purchases book
- Sales book
5. What is a ledger?
Answer: A ledger is a book containing all accounts where transactions are recorded.
6. Explain trial balance.
Answer: A trial balance is a statement showing debit and credit balances to check accuracy.
7. Define depreciation.
Answer: Depreciation is the gradual reduction in value of fixed assets.
8. Mention two methods of depreciation.
Answer:
- Straight-line method
- Reducing balance method
9. What is a balance sheet?
Answer: A statement showing financial position of a business at a specific date.
10. Define capital.
Answer: Capital is the owner’s investment in a business.
11. Explain drawings.
Answer: Drawings are withdrawals made by the owner for personal use.
12. What is goodwill?
Answer: Goodwill is the reputation of a business that attracts customers.
13. State two types of accounts.
Answer:
- Personal account
- Real account
14. Define assets.
Answer: Assets are resources owned by a business.
15. Define liabilities.
Answer: Liabilities are debts owed by a business.
16. What is a cash book?
Answer: A cash book records all cash transactions.
17. Explain bank reconciliation statement.
Answer: It is used to reconcile differences between cash book and bank statement.
18. Define profit.
Answer: Profit is excess of income over expenses.
19. Define loss.
Answer: Loss occurs when expenses exceed income.
20. State two accounting concepts.
Answer:
- Going concern concept
- Accrual concept
