Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 361:

• JAMB 2002

Given that 1/3 of the N6000 stock held by a branch is purchased from outsiders. If goods are invoiced to branch at 25% on cost, the provision for unrealized profit is?

A. N1000.00
B. N333.33
C. N666.66
D. N800.00

Question 362:

• JAMB 2002

Costs that vary in proportion to the level of production in a manufacturing environment are known as?

A. Control costs
B. Overheads
C. Direct costs
D. Indirect costs

Question 363:

• JAMB 2002

A company operating a chain of retail provision stores invoices goods to the branches at cost plus a mark-up of 25%. What is the mark-up percentage on selling price?

A. 35%
B. 30%
C. 20%
D. 15%

Question 364:

• JAMB 2002

Given:
Cash purchases ..............................N25000
Trading creditors............................N45000
Opening balance of trade creditors...........N35000
Calculate the purchases for the period?

A. N80,000
B. N35,000
C. N105,000
D. N70,000

Question 365:

• JAMB 2002

Which method of pricing can be used satisfactorily in either a rising or falling price situation?

A. Standard price
B. Marketing price
C. FIFO
D. Average method