Principles, concepts, and conventions of accounting - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 3:

• JAMB 1994

Assigning revenues to the accounting period in which goods were sold or services rendered and expenses incurred is known as

A. Passing of entries
B. Consistency convention
C. Matching concept
D. Adjusting for revenue

Question 4:

• JAMB 1994

The accounting convention which states that profit must not be recognized until realized while all losses should be adequately provided for it termed

A. Materiality
B. Objectivity
C. Consistency
D. Conservatism

Question 5:

• JAMB 1994

When a business incurs labour cost in installing a fixed asset, the cost is treated as

A. Additional cost to the asset
B. Business wages and salaries
C. Installation cost of the asset
D. Business cost of the asset