JAMB Accounting Past Questions & Answers - Page 137

681.

The capital of a sole trader can be increased by

A.

Debiting the capital account

B.

Crediting the capital account

C.

Debiting the cash account

D.

Crediting the cash account

Correct answer is C

No explanation has been provided for this answer.

682.

The correct posting in a double entry system of account when there is an increase in double assets, expenses, capital or liabilities is to debit

A.

Capital and debit liabilities

B.

Liabilities and credit assets

C.

Assets and credit capital

D.

Capital and credit assets

Correct answer is C

No explanation has been provided for this answer.

683.

An accountant must not only be interested in record keeping but also in

A.

The application of professional competency

B.

The accuracy of postings

C.

The casting of financial figures

D.

Effective preparation of balance sheet

Correct answer is A

No explanation has been provided for this answer.

684.

The basis upon which assets of an organization is valued is the

A.

Historical concept

B.

Business entity concept

C.

Periodicity concept

D.

Materiality concept

Correct answer is A

The historical cost concept (also known as cost principle of accounting) states that the assets and liabilities of a business should be presented in accounting records at their historical cost.

685.

A chain store is known as?

A.

Department store

B.

Multiple store

C.

Supermarket

D.

Hypermarket

Correct answer is B

No explanation has been provided for this answer.