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WAEC Accounting 2022 Objective — Question 5

Question 5 of 50 from the West African Examinations Council (WAEC) Accounting 2022 Objective paper, with the correct answer and a full explanation.

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Adiza gave an instruction to her banker to pay a premium of Le 30,000 from her account to Union Rock Insurance on a quarterly basis for a policy. This instruction is an example of

  • A. credit transfer
  • B. direct debit
  • C. standing orderCorrect
  • D. bank charges

Explanation

A standing order is an instruction to a bank to pay a fixed amount to a named payee at regular (e.g. quarterly) intervals.

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