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

Question 11:

• 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

Question 12:

• JAMB 1999

A basic unifying concept in accounting implies that?

A. Where creditors'account is zero, the assets are equal to the owners' equity
B. There should be a balance in the creditors' account in order to measure total assets
C. Revenues should be supported by invested and owners'capital
D. Total assets can be less than liabilities and equity

Question 13:

• JAMB 2000

The accounting convention which stipulates that money or goods taken from the business by the owner for personal use should be treated as deductions from capital is

A. Cost
B. Prudence
C. Consistency
D. Entity

Question 14:

• JAMB 2003

Which accounting concept supports the assertion that economic reality takes precedence over legal issues?

A. Realization concept
B. Substance over form
C. Conservatism
D. Measurement concept

Question 15:

• JAMB 2004

The accounting principle that is applied to check arbitrary actions on the part of accountants is?

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