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

Question 6:

• 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 7:

• 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 8:

• JAMB 1995

Which of the following concept stipulates that accounting profit is the difference between revenue and expenses?

A. Accrual concept
B. Conservatism concept
C. Prudence concept
D. Materiality concept

Question 9:

• JAMB 1997

In preparing accounting records, the owner of a business and the business are treated as

A. The same person
B. Having business relationship
C. Separate legal entities
D. Partners

Question 10:

• JAMB 1999

Accrual concept stipulates that?

A. Revenue should be recognized when it is earned
B. Costs should be recognized when the expenditure is paid
C. Revenue should be recognized only when cash is paid
D. Costs should be recognized when the are incurred