JAMB Past Questions and Answers - Page 918

4,586.

The major sources of revenue for the state and local governments is

A.

Value added tax

B.

Statutory allocation

C.

Taxes and levies

D.

Recurrent revenue

Correct answer is B

Statutory allocation; this is the grant from the federal government to the state  and local government.

 

4,587.

The income and expenditure account differs from receipts and payments account because it

A.

Accounts for notional charges

B.

Records transactions that relate to the period on cash basis

C.

Records transactions that relate to the period on accrual basis

D.

Accounts for balance of cash at bank

Correct answer is B

Receipts and payments account is a summary of cash transactions for a period and it is a real account. Income and expenditure account is a summary of expenditure and income like trading and profit and loss account and it is a nominal account.

4,588.

When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at 

A.

A price above or below the stipulated price

B.

Any price but not below the transfer price

C.

Cost price

D.

A price that is equal to the mark-up

Correct answer is B

Cost-plus pricing is a pricing strategy in which the selling price is determined by adding a specific amount markup to a product's unit cost.

Cost plus pricing involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct materialcost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.