JAMB Past Questions and Answers - Page 951

4,751.

If a trail balance is in agreement, one of the statement is untrue

A.

The accounting system is error free

B.

Equal debit entries and credit entries were recorded for each transaction

C.

The debit and credit from the journal were posted to the accounts

D.

Account balances were correctly computed

Correct answer is A

Agreement of trial balance does mean it is error free. Some errors might not be disclosed by mere agreement

 

4,752.

Specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting financial statements are known as ---------------------

A.

Financial accounting

B.

Accounting policies

C.

Cost accounting

D.

Accounting conventions

Correct answer is B

No explanation has been provided for this answer.

4,753.

Goods stolen at the branch is debited to

A.

Branch stock account

B.

Defalcations account

C.

Branch debtors account

D.

Branch adjustment account

Correct answer is D

No explanation has been provided for this answer.

4,754.

The income and expenditure account of a club is the same as

A.

Single entry account

B.

A profit and loss account

C.

A trading account

D.

A cash book

Correct answer is B

This is because the income and expenditure account just like the profit and loss account shows the income to ascertain surplus or deficit.

4,755.

Dangote acquired Dantata’s business for N350,000. The total asset work were N820,000 and liabilities amounted to N 640,000

The double entry to record the goodwill in the books is debt

A.

Purchase of business account and credit cash account

B.

Goodwill account and credit purchase of business account

C.

Cash account and credit goodwill account

D.

Goodwill account and credit cash account

Correct answer is B

when there is excess of purchase consideration over net assets, the accounting entries is to debit goodwill account as the receiving account and credit purchase of business account as the giving account.