2024 WAEC BOOK KEEPING: 2024 WAEC BOOK KEEPING ESSAY AND OBJ ANSWERS (7941)

(1a)
Stock valuation is the process of determining the current (or projected) worth of a stock at a given time period.

(1bi)
-CHARACTERS OF FIFO-
(i)it is easy to apply
(ii)the assumed flow of costs corresponds with the normal physical flow of goods.

(1bii)
-CHARACTERISTICS OF LIFO-
(i)It is used to account for inventory that records the most recently produced items as sold first.
(ii)The cost of the most recent products 'copied from e x a m p l a z a . c o m free' purchased (or produced) are the first to be expensed as cost of goods sold (COGS).

(2a)

Expense in accounting is the money spent, or costs incurred, by a business in their effort to generate revenues. Example: Delivery expense

(2b)

Revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Example: Service revenue

(2c)

Loss is a decrease in net income that is outside the normal operations of the business. In other Words losses can result from a number of activities. Example: sale of an asset for less than its carrying amount.

(2d)

Capital is the value of the investment in the business by the owner(s). It is that part of the business that belongs to the owner; hence it is often described as the owner's interest. Eg: Financial capital

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