JAMB Accounting Past Questions & Answers - Page 275

1,371.

The net profit or loss for the year is determined in profit and loss account after

A.

Deducting purchases from sales

B.

Deducting cost of goods sold from sales and adding administrative expenses

C.

Adding commissions received to gross profit

D.

Eliminating all expenses from gross profit and adding any other income

Correct answer is D

No explanation has been provided for this answer.

1,372.

Given;
Purchases = N20,000
Sales = N40,000
Carriage inwards = N5,000
Carriage outwards = N5,000
Opening stock = N10,000
Closing stock = N5,000

What is the cost of goods sold?

A.

N30,000

B.

N25,000

C.

N20,000

D.

N15,000

Correct answer is A

Cost of goods sold:
= Opening stock + purchases + carriage inwards - closing stock
= 10000 + 20000 + 5000 - 5000
= 35000 - 5000
= 30000
: Cost of goods sold = 30000
 

1,373.

The financial position of an organization at a particular time can be ascertained from the

A.

Statement of sources and application of funds

B.

Statement of retained earnings

C.

Balance sheet

D.

Profit and loss account

Correct answer is C

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity. It simply shows the financial position of a business for a particular given period.

1,374.

When preparing a bank reconciliation statement, which of the following is deducted from the balance per bank statement?

A.

Bank charges

B.

Uncleared cheques

C.

Returned cheques

D.

Unpresented cheques

Correct answer is D

No explanation has been provided for this answer.

1,375.

When is a petty cash account debited?

A.

When the fund is established and every time money is spent

B.

When the fund is established and every time it is replenished

C.

When the fund is established and when the size of the float is decreased

D.

Every time money is drawn from the petty cash

Correct answer is B

No explanation has been provided for this answer.