Jamb Accounts - Principles of Accounts 1997 Past Questions and Answers

Question 21:

• JAMB 1997

The records of wages due but not yet paid is an example of an adjustment for

A. Apportionment of revenue between two periods
B. Recognizing accrued expenses
C. Recognizing unaccounted revenue
D. Recognizing prepaid expenses

Question 22:

• JAMB 1997

The process of allocating the cost of an intangible assets over its useful life is known as

A. Depreciation
B. Extraction
C. Depletion
D. Amortization

Question 23:

• JAMB 1997

The principle use of control accounts is to

A. Localize error within the ledger
B. Prevent fraud
C. Increase sales
D. Record assets and liabilities

Question 24:

• JAMB 1997

In the absence of a sales day book or sales account the credit for sales can be computed from

A. Creditors control account
B. Debtors control account
C. Opening figures of the balance sheet
D. Closing figures of the balance sheet

Question 25:

• JAMB 1997

which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of the business?

A. Decrease in the closing balance of sales ledger control accout
B. Increase in net profit
C. Increase in the value of sales
D. Decrease in the value of purchases in the trading account