Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 1994

Antics Electronic Company recently bought six generators. Which of the following is the correct method of recording this transaction?

A. Debit generator account and credit cash account
B. Debit purchases account and credit cash account
C. Debit cash accounts and credit purchases account
D. Debit cash account and credit generator account

Question 7:

• 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

Question 8:

• JAMB 1994

What is the cardinal rule of the double entry system?

A. Debit the increasing account and credit the decreasing account
B. Debit the receiving account and credit the giving account
C. Debit the asset account and credit the liability account
D. Debit the revenue account and credit the expenditure account

Question 9:

• 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 10:

• JAMB 1994

Mallam Gambo bought a freezer for his shop costing N10,500. In recording, he debited office expenses account and credited the bank account. What book-keeping error has he committed?

A. Error of commission
B. Error of reversal of entries
C. Error of principle
D. Compensating error