In dealing with incomplete record, fixed assets are posted to___________-

Closing balance sheet as brought forward figure

Profit and loss account as brought forward figure

Closing balance sheet as carried forward figure

Closing balance sheet as brought forward figure

Profit and loss as carried forward figure

In the absence of a partnership deed, the act stipulates that____________

Interest should not be allowed on partners drawings

An amount should be fixed as salaries for partners

Profits and losses should not be shared equally

Interest on partner’s loan should be 25%

Interest should not be allowed on partners drawings

The control account is used in facilitating?

the various location of errors in the various accounts

the payment of debts and liabilities of the firm

assets distribution with respect to income

Sule and Ahmed are in partnership sharing profit and losses equally. If Khadija is admitted as a new partner to take 1/5 th as her share. What is the new profit or loss sharing?

Sule1/3, Ahmed1/3, Khadija 1/3.

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

Price above or below the stipulated price

Any price but not below the transfer price

A price that is equal to the mark up

The major source of document which enables employer to calculate the employee wages is the?

records of number of hours worked

Record of independence per employee

To account for expenses paid by head office on behalf of the branch, the branch should___________

Debit profit and loss account and credit head office account

Debit head office account and credit cash

Credit cash and debit profit and loss account

Credit profit and loss account and debit head office account

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

Price above or below the stipulated price

Any price but not below the transfer price

A price that is equal to the mark up

The partnership deed normally specifies?

how profits or losses are to be shared

the capital to be contributed annually

how salaries are paid to employees

the profit that should be earned annually

JAMB UTME - Principles of Accounts - 2018

Question 1 Report

A provision for bad debt account had N33,800 at the beginning of the year and N4,220 at the close of the year. If bad debts are calculated at the rate of 1/20% of annual credit sales, what was the credit sales for the period?

N210,000

N844,400 Correct answer

N840,000

N500,000

Answer Details

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Provisions And Reserves

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Question 2 Report

What act generally includes completing unfinished partnership business, collecting and paying debts, collecting partnership assets to be turned into cash and taking inventory?

Formation

dissolution Correct answer

winding up

termination

Answer Details

Read lesson note on Partnership Accounts (WAEC)

Read lesson note on Joint Venture Accounts (JAMB)

Partnership Accounts

Joint Venture Accounts

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Question 3 Report

The rent expense for Trendy store is ₦3500. Trendy store has three departments; jewelry, hair dressing, and clothing. The floor spaces occupied by the departments are 3:2:5 respectively. What is the rent allocated to clothing department?

₦700

₦1050

₦1750 Correct answer

₦3500

Answer Details

To allocate the rent expense to the clothing department, we need to use the ratio of the floor spaces occupied by each department. Let's first add up the ratio of the floor spaces: 3 + 2 + 5 = 10 This means that the clothing department occupies 5/10 (or 1/2) of the total floor space. To allocate the rent expense to the clothing department, we need to multiply the total rent expense by the proportion of the floor space that the clothing department occupies: ₦3500 x 1/2 = ₦1750 Therefore, the rent allocated to the clothing department is ₦1750. So, the correct answer is option (C) ₦1750.

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Read lesson note on Departmental Accounts (JAMB)

Departmental And Branch Accounts

Departmental Accounts

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Question 4 Report

Branch stock adjustment account is prepared at?

Cost price

new price

invoice price Correct answer

normal price

Answer Details

Read lesson note on Stock Valuation (JAMB)

Stock Valuation

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Question 5 Report

Which of the following is a conversion cost?

Factory overhead Correct answer

purchases

material cost

wages

Answer Details

A conversion cost is a manufacturing cost that is incurred in the process of converting raw materials into finished goods. It includes the expenses related to the direct labor and factory overhead used in the production process. Out of the options given, wages would be considered a conversion cost. Wages refer to the payment made to workers who are directly involved in the manufacturing process. These workers are typically responsible for transforming the raw materials into finished goods, which makes their wages a necessary part of the conversion process. Factory overhead, which refers to the indirect costs associated with manufacturing, would also be considered a conversion cost. This includes expenses such as rent, utilities, and equipment maintenance, which are necessary to keep the production process running smoothly. On the other hand, purchases and material costs are not considered conversion costs. Purchases refer to the amount paid for raw materials and other items that are used in the production process, while material costs are the costs associated with the raw materials themselves. While both of these costs are necessary for production to occur, they are not directly related to the conversion process itself.

Read lesson note on Manufacturing Accounts (JAMB)

Manufacturing Accounts

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Question 6 Report

The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________

Accountant general

Finance minister

Auditor general Correct answer

Permanent secretory.

Answer Details

The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the Auditor General. The Auditor General is an independent body that audits and reports on the government's financial statements, ensuring that public expenditures are legal and authorized, and are within budgeted amounts. The Auditor General is responsible for reviewing and examining all financial records of the government, ensuring that financial transactions are recorded accurately, and that financial reporting is transparent and in compliance with the applicable laws and regulations. The Auditor General is usually appointed by the government, and the office is independent of any particular government department. This independence ensures that the Auditor General can operate impartially and without undue influence from any particular government agency. The Auditor General is a vital part of ensuring the accountability and transparency of government finances and plays a critical role in maintaining public trust in government institutions.

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Public Sector Accounting

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Question 7 Report

A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.

If the scrap value is presently N15,000, what will be the yearly depreciation using the straight line method?

N4,000 Correct answer

N7,000

N11,000

N24,000

Answer Details

The straight-line method is a commonly used depreciation method for accounting purposes. It assumes that an asset loses an equal amount of its value each year over its useful life. To calculate the yearly depreciation using the straight-line method, you need to subtract the scrap value from the original cost and then divide by the useful life of the machine. Original Cost of the Machine = N35,000 Scrap Value = N15,000 Useful Life = 5 years Depreciable Cost = Original Cost - Scrap Value Depreciable Cost = N35,000 - N15,000 Depreciable Cost = N20,000 Yearly Depreciation = Depreciable Cost / Useful Life Yearly Depreciation = N20,000 / 5 Yearly Depreciation = N4,000 Therefore, the yearly depreciation using the straight-line method for this machine is N4,000. is the correct answer.

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Provisions And Reserves

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Question 8 Report

Use the information below to answer the question:

Trading account for the year ended 31st December 2009

₦	₦
Opening Stock 32,000	Sales 48,000
Purchases 40,000	Less Return 2,000
Carriage inwards 1,000
41,000
Less Return 2,000 39,000

Cost of goods available ??
Less closing stock 9,000
Cost of goods sold ??

Calculate the cost of goods sold

₦61,000

₦62,000 Correct answer

₦58,000

₦57,000

Answer Details

To calculate the cost of goods sold, we need to find the cost of goods available and then subtract the closing stock. The cost of goods available is found by adding the opening stock to the cost of purchases: 32,000 + 39,000 = 71,000 The cost of goods sold is found by subtracting the closing stock from the cost of goods available: 71,000 - 9,000 = 62,000 So, the cost of goods sold is ₦62,000.

Read lesson note on Stock Valuation (JAMB)

Stock Valuation

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Question 9 Report

The main difference between the ordinary and preference shareholders is that?

the former have voting rights while the latter do not Correct answer

in the case of winding up, the former are paid first before the latter

the latter are not members of the company while the former are

the former receives dividends while the latter do not

Answer Details

Read lesson note on Joint Venture Accounts (JAMB)

Joint Venture Accounts

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Question 10 Report

Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?

Selling price

Fixed percentage on cost

Cost price Correct answer

Invoice price

Answer Details

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Read lesson note on Nature And Significance Of Accounting (JAMB)

Read lesson note on Principles Of Double Entry (JAMB)

Branch Accounts

Nature And Significance Of Accounting

Principles Of Double Entry

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Question 11 Report

	N
Direct material	2,500
Direct labour	5,000
Direct expenses	1,000
Overhead expenses	1,500

Use the information contained in the table to answer the question below.

From the data above, compute the prime cost.

N6,500

N8,500 Correct answer

N6,000

N7,500

Answer Details

To compute the prime cost, we need to add the cost of direct materials, direct labour, and direct expenses. Adding the figures for direct materials, direct labour, and direct expenses gives us: 2,500 + 5,000 + 1,000 = 8,500. Therefore, the prime cost of the product is N8,500. The prime cost represents the total cost of direct materials, direct labour, and direct expenses that are directly attributable to the production of a product or service. This cost is essential to know for any manufacturing or production-oriented business, as it is the basis for determining the total cost of production.

Read lesson note on Control Accounts And Self-Balancing Ledgers (WAEC)

Read lesson note on Cashbook (JAMB)

Read lesson note on Nature And Significance Of Accounting (JAMB)

Control Accounts And Self-Balancing Ledgers

Cashbook

Nature And Significance Of Accounting

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Question 12 Report

Advertising expenses incurred on a product in a business organization should be charged to

Sales department Correct answer

Production department

Purchase department

Administration department

Answer Details

Advertising expenses incurred on a product in a business organization should be charged to the Sales department. The purpose of advertising is to promote a product or service to potential customers, which makes it an important part of the sales process. By generating interest in the product, advertising can help to increase sales and revenue. Therefore, advertising expenses are considered a selling expense and should be charged to the Sales department. This department is responsible for the promotion and sale of the product, and as such, it is appropriate to allocate the cost of advertising to this department. The Production department is responsible for manufacturing the product, while the Purchase department is responsible for acquiring the materials and supplies needed for production. Neither of these departments is directly involved in the sales process, which means that it would not be appropriate to charge advertising expenses to them. Finally, the Administration department is responsible for managing the overall operations of the business, including finance, human resources, and legal affairs. While advertising is an important part of running a successful business, it is not typically considered to be an administrative expense.

Read lesson note on Nature And Significance Of Accounting (JAMB)

Read lesson note on Principles Of Double Entry (JAMB)

Nature And Significance Of Accounting

Principles Of Double Entry

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Question 13 Report

Which of the following is not an inventory costing method?

FIFO

LIFO

Average cost method

LILA Correct answer

Answer Details

The inventory costing method that is not a recognized method is "LILA." This is because "LILA" is not a common inventory costing method used in accounting practices, and it is not a recognized acronym or abbreviation for any known costing method. In contrast, FIFO, LIFO, and the average cost method are all well-known and widely used inventory costing methods in accounting. FIFO stands for "First-In, First-Out," and it means that the first items added to inventory are the first ones sold, while the newer items are sold later. LIFO stands for "Last-In, First-Out," and it means that the most recent items added to inventory are the first ones sold, while older items are sold later. The average cost method takes the average cost of all items in inventory and uses that cost to calculate the value of goods sold and the value of ending inventory. In summary, while FIFO, LIFO, and the average cost method are all recognized inventory costing methods, "LILA" is not a commonly used or recognized inventory costing method.

Read lesson note on Stock Valuation (JAMB)

Stock Valuation

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Question 14 Report

A club received rent N10,000 and donation of N30,000. it paid N6,000 for entertainment and is still owing N16,000 . The balance of the receipts and payments account is?

N14,000 Correct answer

N24,000

N8,000

N42,000

Answer Details

Read lesson note on Stock Valuation (JAMB)

Read lesson note on Cashbook (JAMB)

Read lesson note on Incomplete Records And Single Entry (JAMB)

Stock Valuation

Cashbook

Incomplete Records And Single Entry

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Question 15 Report

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a

Bonus

Good will Correct answer

Premium

Commission

Answer Details

The amount paid by the new partner on admission as compensation for the reputation built up by old partners is called "Goodwill". Goodwill is an intangible asset that represents the value of a business beyond its tangible assets such as property, equipment, and inventory. It takes into account things like the business's reputation, customer relationships, and brand recognition. When a new partner joins a business, they may pay for a share of the goodwill to compensate the existing partners for the value they've built up in the business. In simpler terms, goodwill is like the good reputation of a business and the new partner pays for a share of this reputation when they join the business.

Read lesson note on Partnership Accounts (WAEC)

Partnership Accounts

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Question 16 Report

	N
sales	20,000
cost of sales	10,000
operating expenses	2,500
expenses prepaid included in operating expenses	500

Use the information above to answer the following question.

What is the gross profit margin?

100%

50% Correct answer

40%

30%

Answer Details

The gross profit margin is a measure of the profitability of a business, and it is calculated by dividing the gross profit by the revenue and expressing the result as a percentage. The gross profit is the difference between the revenue and the cost of goods sold, which is the direct cost of producing the goods or services that the business sells. In the information provided, the revenue or sales is N20,000, and the cost of sales is N10,000. Therefore, the gross profit can be calculated as follows: Gross profit = Revenue - Cost of sales = N20,000 - N10,000 = N10,000 The gross profit margin can be calculated by dividing the gross profit by the revenue and expressing the result as a percentage: Gross profit margin = (Gross profit / Revenue) x 100% = (N10,000 / N20,000) x 100% = 50% Therefore, the gross profit margin is 50%, which means that for every Naira of revenue generated, the business earns 50 kobo in gross profit. This indicates that the business has a healthy gross profit margin and is able to cover its direct costs of production while making a reasonable profit.

Read lesson note on Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

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Question 17 Report

	₦
Stock at branch 1st January at cost	400
Goods sent to branch at cost	8000
Returns to head office	340
Cash sales	9160
Stock at branch 31st December at cost	720

Use the information below to answer the question.

Adex Ltd. Issues stock to its retail branches at cost price.

Calculate the cost of goods credited to the head office trading account.

₦7200

₦7460

₦7500

₦7660 Correct answer

Answer Details

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Read lesson note on Cashbook (JAMB)

Read lesson note on Incomplete Records And Single Entry (JAMB)

Branch Accounts

Cashbook

Incomplete Records And Single Entry

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Question 18 Report

The excess of sales over cost of goods sold is?

gross sales

gross profit Correct answer

net profit

net sales

Answer Details

The excess of sales over cost of goods sold is called "gross profit". Gross profit represents the amount of money that a company earns from selling its products or services, minus the direct costs associated with producing those products or services. For example, if a company sells a product for $100 and it costs $60 to produce that product, the company's gross profit would be $40. This means that for every product sold, the company earns $40 that can be used to cover other expenses like salaries, rent, and marketing. It's important to note that gross profit is different from net profit. Net profit is the total amount of money a company earns after all of its expenses, including indirect costs like overhead and taxes, have been subtracted from its revenue. Gross profit, on the other hand, only takes into account the direct costs associated with producing and selling products or services.

Read lesson note on Accounting Concepts (WAEC)

Accounting Concepts

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Question 19 Report

Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________

Partners salaries

Interest on capital

Interest on loans Correct answer

Partners drawings

Answer Details

In a partnership, the profit or loss is calculated by subtracting all expenses from the gross profit. These expenses include various costs incurred in running the partnership business, such as rent, utilities, supplies, and wages paid to employees. Additionally, the expenses also include the salaries paid to partners, which is the amount paid to the partners for their work in the business. This is different from the interest on capital, which is the return on the money invested by the partners in the business. Interest on loans is the cost of borrowing money to finance the partnership's operations. This interest expense is deducted from the gross profit to determine the partnership's net profit or loss. Finally, the partners' drawings, which are the amounts taken out of the business by the partners for personal use, are also deducted from the gross profit to determine the partnership's net profit or loss. In summary, the profit or loss in a partnership is calculated by subtracting all expenses, including salaries paid to partners, interest on capital, interest on loans, and partners' drawings, from the gross profit.

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Partnership Accounts

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Question 20 Report

The value of the current assets will be?

N10,361

N10,651 Correct answer

N17,396

N17,848

Answer Details

Read lesson note on Nature And Significance Of Accounting (JAMB)

Read lesson note on Principles Of Double Entry (JAMB)

Nature And Significance Of Accounting

Principles Of Double Entry

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Question 21 Report

Mrs. Okoro who lives in the riverine community of Rivers State makes her living through crabbing and fishing. This type of occupation is?

commercial Correct answer

manufacturing

service

Extractive

Answer Details

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Accounts Of Not-for-profit-making Organizations

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Question 22 Report

Tanko Ltd had

Earnings per share 47k

Dividends per share 30k

Per value of each share N1.20

market price per share NM1.50

The company's earnings yield is?

N20.00%

N25.00%

N31.33% Correct answer

N39.17%

Answer Details

The earnings yield is a measure of the return on investment for a company's earnings. It is calculated by dividing the earnings per share by the market price per share, and expressing the result as a percentage. In this case, Tanko Ltd's earnings per share is 47k (0.47 Naira), and its market price per share is NM1.50 (1.50 Naira). So, the earnings yield can be calculated as follows: Earnings yield = (Earnings per share / Market price per share) x 100% = (0.47 / 1.50) x 100% = 31.33% Therefore, the earnings yield for Tanko Ltd is 31.33%, which means that for every Naira invested in the company's stock, investors can expect a return of 31.33 Naira in earnings.

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Nature And Significance Of Accounting

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Question 23 Report

The accounting entries used to record a cheque issued by a business is to?

debit cash book and credit drawer Correct answer

credit cash book and debit drawer

debit cash book and credit suspense account

credit cash book and debit suspense account

Answer Details

The accounting entries used to record a cheque issued by a business are to credit the Cash Book and debit the Drawer's account. When a business issues a cheque, it reduces the balance of cash held by the business, and this reduction in cash is recorded by debiting the Drawer's account. At the same time, the cheque creates a liability for the business, which is recorded by crediting the Cash Book. In other words, when the cheque is issued, the business is reducing its own cash balance and creating a debt or liability that will be paid in the future. Therefore, the Cash Book is credited to reflect the creation of the liability, while the Drawer's account is debited to show the reduction in the business's cash balance.

Read lesson note on Cashbook (JAMB)

Cashbook

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Question 24 Report

	N
Purchase ledger opening balance	4,000
sales ledger opening balance	6,000
credit purchase	25,000
Discounts allowed	1,000
Returns inwards	2,000
Credit sales during the year	10,000
Return outwards	6,000

Use the information above to answer the following question;

Calculate the sales ledger balance.

N13,000 Correct answer

N10,000

N6,000

N3,000

Answer Details

Read lesson note on Cashbook (JAMB)

Cashbook

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Question 25 Report

which of the following affects the accuracy and authenticity of trial balance?

Error of ommission

Error of commission

Error of transposition Correct answer

Error of original entry

Answer Details

Read lesson note on Principles Of Double Entry (JAMB)

Principles Of Double Entry

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Question 26 Report

If the purchase price exceeds the net assets of a company, the excess amount is debited to________________

Cash account

purchase account

goodwill account Correct answer

sales account

Answer Details

If the purchase price of a company exceeds the net assets, the excess amount is debited to the "goodwill account." Goodwill represents the value of a company's reputation, brand, customer relationships, and other intangible assets that are not included in the net assets of a company. When one company acquires another company for a price that exceeds the net assets of the acquired company, the difference between the purchase price and the net assets is attributed to the value of goodwill. Therefore, the excess amount is debited to the goodwill account to record the value of the intangible assets acquired in the transaction. This helps the acquiring company to reflect the true value of the acquired company's intangible assets on their balance sheet.

Read lesson note on Partnership Accounts (WAEC)

Partnership Accounts

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Question 27 Report

Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January , 2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. what is the closing balance in Tea’s current account

36,925Cr Correct answer

40,000Cr

50,000Dr

36,295Dr

Answer Details

Read lesson note on Partnership Accounts (WAEC)

Partnership Accounts

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Question 28 Report

Departmentalization of accounts is useful because it shows the____________

Over all performance of a division Correct answer

Cost per unit of a profit

Price per unit of a product

Over all performance of a firm

Answer Details

Departmentalization of accounts is useful because it shows the overall performance of a division. It allows a company to track the financial performance of individual departments or divisions within the company, providing insight into which areas of the business are performing well and which ones need improvement. By analyzing financial data for each department, managers can make informed decisions about allocating resources and making changes to improve overall company performance. This approach helps to ensure that each department is held accountable for its performance, and that managers have the information they need to make effective decisions about the allocation of resources. Ultimately, this can lead to improved financial performance for the entire company.

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Departmental And Branch Accounts

Departmental Accounts

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Question 29 Report

A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.

The yearly depreciation using the straight line method would be

N8,800

N6,500

N5,200 Correct answer

N4,400

Answer Details

The straight-line method of depreciation assumes that an asset decreases in value evenly over its useful life. To calculate the yearly depreciation using the straight-line method, we need to subtract the scrap value from the original cost and then divide the result by the number of years of the asset's useful life. The original cost of the machine is N35,000, and the scrap value is N9,000. Therefore, the depreciable value of the machine is: Depreciable value = Original cost - Scrap value = N35,000 - N9,000 = N26,000 The useful life of the machine is 5 years. Therefore, the yearly depreciation is: Yearly depreciation = Depreciable value / Useful life = N26,000 / 5 = N5,200 So the yearly depreciation using the straight-line method for this machine is N5,200. Therefore, option C is the correct answer.

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Provisions And Reserves

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Question 30 Report

Bala ltd acquired the business of bello ltd and caused the separate existence of the latter company to terminate.

conversion

dissolution

merger Correct answer

absorption

Answer Details

Based on the given information, the term that best describes the scenario is "merger". A merger is a business consolidation that involves the combination of two or more companies into a single new entity. In this case, Bala Ltd acquired the business of Bello Ltd, which means that Bello Ltd is no longer operating as a separate company. Instead, Bello Ltd's assets, liabilities, and operations have been merged with those of Bala Ltd to form a single new entity. It's important to note that a merger can take many forms, and the specific legal and financial details of the transaction can vary. However, the key idea is that two or more companies combine to form a new, larger entity.

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Company Accounts

The Final Accounts Of A Sole Trader

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Question 31 Report

N
Purchase ledger opening balance	4,000
sales ledger opening balance	6,000
credit purchase	25,000
Discounts allowed	1,000
Returns inwards	2,000
Credit sales during the year	10,000
Return outwards	6,000

Use the information above to answer the following question;

What is the purchase ledger balance?

N29,000

N24,000

N4,000

N23,000 Correct answer

Answer Details

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Cashbook

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Question 32 Report

The basic role of accounting is to?

detect fraud

attest to financial statements

measure performance Correct answer

protect shareholders

Answer Details

Read lesson note on Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

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Question 33 Report

Use the information below to answer the question.

	Total	P	Q		Total	P	Q
	₦	₦	₦		₦	₦	₦
Stock	3,000	2,000	1,000	Sales	10,000	6,000	4,000
Purchase	4,000	2,500	1,500	Closing Stock	2,000	1,500	500

Goods worth ₦300 was transferred from department Q to P. Similarly, P’s total expenses for the period was ₦200.

Department P’s net profit was

₦2,500 Correct answer

₦2,800

₦3,000

₦5,200

Answer Details

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Single Entry And Incomplete Records

Departmental Accounts

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Question 34 Report

When goodwill is not retained in the business, the entries in the new partners books will be to debit______________

Goodwill account and credit partners capital account

Cash account and credit goodwill account

Goodwill account and credit cash account

Partners capital account and credit goodwill account Correct answer

Answer Details

Read lesson note on Partnership Accounts (WAEC)

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Partnership Accounts

Provisions And Reserves

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Question 35 Report

What is the amount of capital employed?

₦7000

₦10000

₦22000

₦15000 Correct answer

Answer Details

Read lesson note on The Accounting Equation And Double Entry Principle (WAEC)

The Accounting Equation And Double Entry Principle

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Question 36 Report

Which of the following is not a type of branch?

Dependent branch

foreign branch

independent branch

single branch Correct answer

Answer Details

"Single branch" is not a type of branch. A branch refers to an additional location of a business, separate from its main or headquarters location. A dependent branch is a location that relies on the head office for support and decision making. An independent branch operates separately from the head office, making its own decisions and managing its own resources. A foreign branch is a location established in a foreign country. However, "single branch" is not a type of branch. It simply refers to a situation where a business has only one location or branch.

Read lesson note on Branch Accounts (JAMB)

Branch Accounts

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Question 37 Report

Lubricating oil and spare parts of machines are example of?

indirect expense

direct expense Correct answer

indirect material

direct material

Answer Details

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Miscellaneous Accounts

Accounting Concepts

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Question 38 Report

Use the information below to answer question

Trading account for the year ended 31st December 2009

	₦			₦
Opening Stock	32,000		Sales	48,000
Purchases	40,000		Less Return	2,000
Carriage inwards	1,000
		41,000
Less Return	2,000	39,000
Cost of goods available		??
Less closing stock		9,000
Cost of goods sold		??

₦20,500 Correct answer

₦23,000

₦28,000

₦27,000

Answer Details

Read lesson note on Stock Valuation (JAMB)

Stock Valuation

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Question 39 Report

The current growth in the volume of trading and financial dealings in nigerian is helped by?

credit as a factor in business

payments for goods in cash

increased financial activities Correct answer

government intervention

Answer Details

The current growth in the volume of trading and financial dealings in Nigeria is mainly helped by increased financial activities. Over the past few years, there has been a significant increase in the number of financial institutions, such as banks and mobile money operators, offering various financial products and services. This has made it easier for businesses and individuals to access credit, make payments, and conduct other financial transactions. Moreover, the rise of digital technologies has further facilitated financial activities, allowing people to conduct transactions online and in real-time. This has also helped to reduce the cost and time required to conduct financial transactions, making it more convenient for businesses and individuals to engage in trade. While government intervention may have played a role in creating an enabling environment for financial activities, such as through the introduction of policies and regulations, it is ultimately the increased availability and accessibility of financial services that have driven the growth of trading and financial dealings in Nigeria.

Read lesson note on Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

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Question 40 Report

The total credit sales for a period can be extracted from the?

Cash book

Sales day book Correct answer

Petty cash book

Returns inwards

Answer Details

The total credit sales for a period can be extracted from the Sales Day Book. The Sales Day Book is a book of prime entry used to record all credit sales made by a business during a particular period. It typically contains information such as the date of the sale, the name of the customer, the amount of the sale, and any relevant invoice or reference numbers. Since credit sales involve selling goods or services on credit, they are not immediately paid for at the time of sale. Instead, the customer is given a certain amount of time, usually 30 to 90 days, to pay for the goods or services. As a result, credit sales do not result in an immediate inflow of cash, but they do represent revenue earned by the business. Therefore, to determine the total credit sales for a given period, we can simply add up all the credit sales recorded in the Sales Day Book for that period. This figure represents the total amount of revenue earned by the business from credit sales during that period, and is an important indicator of the business's financial performance. In summary, the Sales Day Book is used to record all credit sales made by a business, and the total credit sales for a period can be extracted from this book by adding up all the credit sales recorded during that period.

Read lesson note on Cashbook (JAMB)

Read lesson note on Principles Of Double Entry (JAMB)

Cashbook

Principles Of Double Entry

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