Question 16:

• JAMB 1994

The financial position of an organization at a particular time can be ascertained from the

A. Statement of sources and application of funds
B. Statement of retained earnings
C. Balance sheet
D. Profit and loss account

Question 17:

• JAMB 1994

Given;
Purchases = N20,000
Sales = N40,000
Carriage inwards = N5,000
Carriage outwards = N5,000
Opening stock = N10,000
Closing stock = N5,000
What is the cost of goods sold?

A. N30,000
B. N25,000
C. N20,000
D. N15,000

Question 18:

• JAMB 1994

The net profit or loss for the year is determined in profit and loss account after

A. Deducting purchases from sales
B. Deducting cost of goods sold from sales and adding administrative expenses
C. Adding commissions received to gross profit
D. Eliminating all expenses from gross profit and adding any other income

Question 19:

• JAMB 1994

If a bad debt previously written off is subsequently repaid, the amount collected is recorded as an

A. Income in the profit and loss account
B. Income in the balance sheet
C. Additional cash in the profit and loss account
D. Expense in the balance sheet

Question 20:

• JAMB 1994

Beginning and ending accounts receivable balances were N8,000 and N15,000 respectively. If collections from customers during the period were N36,000, then total sales on account would be

A. N23,000
B. N29,000
C. N36,000
D. N43,000