Nature and Significance of Accounting - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• 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 7:

• 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 8:

• JAMB 1994

Which of the following categories of labour cost will be classified as direct?

A. Accountant's salary
B. Factory workers' salary
C. Managing director's salary
D. Cashier's salary

Question 9:

• JAMB 1994

The cash bass of accounting requires the recognition of revenue only when they are

A. Due
B. Earned
C. Paid
D. Received

Question 10:

• JAMB 1995

which of the following factors has aided the development of accounting?

A. The emergence of nation states
B. The discovery of mineral resources in commercial quantity
C. The growth in size of businesses and separation of ownership and management
D. The development and management of sophisticated monetary system