JAMB Accounting Past Questions & Answers - Page 256

1,276.

The total of the discounts received column in the cash book is posted to the?

A.

Credit of the discounts received account

B.

Debit of the discounts allowed account

C.

Credit of the discounts allowed account

D.

Debit of the discounts received account

Correct answer is A

The discounts allowed column is on the debit side, while the discounts received column is on the credit side.

The total of the discount column on the credit side represents the total cash discount received from suppliers during the period and is posted to the discount received account maintained in the ledger.

1,277.

If the inventory at the end of the current year is understated and the error is not caught during the following year, the effect is to?

A.

Overstate income this year and understate in next year

B.

Understate income this year and overstate in next year

C.

Understate this year's income with no effect on the next year

D.

Overstate the income for the two-year period

Correct answer is A

No explanation has been provided for this answer.

1,278.

The purchase of two generators by Hassan Electronics Enterprises should be recorded as?

A.

An acquistion of fixed assets

B.

An expenses in its general office expenses account

C.

An acquistion of stock

D.

A part of capital in the capital account

Correct answer is A

No explanation has been provided for this answer.

1,280.

When a transaction causes an assets account to increase, there is

A.

A decrease of equal amount inthe owner's equity account

B.

An increase in a liability account

C.

An increase of equal amonut in another assets account

D.

A decrease of equal amount in a liability account

Correct answer is B

No explanation has been provided for this answer.