JAMB Accounting Past Questions & Answers - Page 37

181.

One of these is not a similarity between Joint Venture and Partnership.

A.

AIM is profit making

B.

It is for a specific venture

C.

Involves two people

D.

Have rights and duties

Correct answer is B

Joint venture is for a specific venture while partnership is for a perpetual succession.

182.

The method of stock valuation in which the issue price is obtained by dividing the value of stock in hand by unit of stock in hand is

A.

FIFO

B.

LIFO

C.

SAP

D.

WAP

Correct answer is D

Weighted Average Price (WAP): Under this method issues are priced at a weighted average price which is obtained by dividing the value by the unit of stock in hand. Issues will continue to be priced at this price until a new batch is received when a new weighted Average price is calculated.

 

183.

Accounting standards are issued at the International level by the

A.

Standards Advisory Council

B.

International Accounting Standards Board

C.

Nigerian Accounting Standards Board

D.

Standing Interpretations Committee

Correct answer is B

Accounting standard is a statement issued by the appropriate standard - setting body locally or internationally on a specific area or topic in Financial Accounting.
Accounting standards are issued at the International level by the International Accounting Standards Board (IASB) - formerly International Accounting Standards Committee (IASC).

184.

The importance of bank statement is all except

A.

Verifies the accuracy of balances of cash book and cheque book

B.

Helps to detect and rectify any error

C.

Helps to debit an account

D.

Helps to update the cash book

Correct answer is C

Bank statement is prepared by the bank to an account border showing the transactions between the customer and the bank within a period of time. It is usually issued monthly or at agreed intervals to the customers.

 

185.

Given:


Additional capital
Capital
Closing capital
Net profit

4000
8000
12000
1500

The drawings for the period stand at

A.

1500

B.

3000

C.

12,000

D.

10,500

Correct answer is A

Using the formula:
OC + AC + NP - D = CC
where: OC = Opening Capital
AC = Additional Capital
NP = Net Profit
D = Drawings
CC = Closing Capital
Then;
8000 + 4000 + 1500 - D = 12,000
13,500 - D = 12,000
D = 13,500 - 12,000
D = ₦1500