JAMB Past Questions and Answers - Page 949

4,741.

The process of cost apportionment is carried out so that

A.

Indirect costs may be controlled

B.

Cost units could gather overhead as they pass through cost centres

C.

Variable costs may be controlled

D.

Common costs are shared among cost centres

Correct answer is D

Cost apportionment is the sharing of commonly incurred expenses proportionately where two or more cost centres are involved

4,742.

The ware and tear of a fixed assets of a company which is chargeable to company’s financial statement is called ------------------------------

A.

Appreciation

B.

Amortization

C.

Provisions

D.

Depreciation

Correct answer is D

Depreciation is the reduction in the service potential of an asset as a result of wear and tear.

 

4,743.

The imprest of a petty cashier is N2450
Expenses on Printing 420
Cleaning 250
Stamp and postage 175

How much was received to maintain the imprest at the end of the month?

A.

N1,605

B.

N875

C.

N2,450

D.

N1,300

Correct answer is B

The imprest system is a form of financial accounting system. The most common imprest system is the petty cash system. The base characteristic of an imprestsystem is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.

450 + 250 +175 = 875
the imprest will be reimbursed with the amount that was spent which is 875

4,745.

Use the following information to answer this question.

Provision for bad debt 1500

Additional information

1. Bad debt written off amount to 3000
2. Debtors balance as at the end of the year is 28,000
3. Provision for bad debts stand at 10%

How much is to be charged to profit and loss account as provision for bad debt?

A.

N2,800

B.

N1,000

C.

N2,500

D.

N3,000

Correct answer is B

Being that debtors balance minus bad debt written off multiplied by 10% and subtracted from the initial provision

28000 – 3000 = 25,000 X 10% = 2500

:. 2500 – 1500 = 1,000 (increase in provisions)