JAMB Accounting Past Questions & Answers - Page 103

511.

If sales return is understated, it implies that ------------------------------ is overstated

A.

Return inward

B.

Sales figure

C.

Cost of sales

D.

Return outward

Correct answer is B

This is so because returns inwards are deducted from sales to ascertain the actual sales made after subtracting defected goods

512.

Use the following information to answer this question.

Club building 400,000
Subscription prepaid 3,000
Sport kits 150,000
Bar creditors 85,000
Subscription owing 32,000

What is the club’s total liabilities?

A.

N11,700

B.

N26,700

C.

N88,000

D.

N85,000

Correct answer is C

Creditors plus subscription in advance 85000 + 3000 = 88,000

513.

If a trail balance is in agreement, one of the statement is untrue

A.

The accounting system is error free

B.

Equal debit entries and credit entries were recorded for each transaction

C.

The debit and credit from the journal were posted to the accounts

D.

Account balances were correctly computed

Correct answer is A

Agreement of trial balance does mean it is error free. Some errors might not be disclosed by mere agreement

 

514.

Specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting financial statements are known as ---------------------

A.

Financial accounting

B.

Accounting policies

C.

Cost accounting

D.

Accounting conventions

Correct answer is B

No explanation has been provided for this answer.

515.

Goods stolen at the branch is debited to

A.

Branch stock account

B.

Defalcations account

C.

Branch debtors account

D.

Branch adjustment account

Correct answer is D

No explanation has been provided for this answer.