Apportionment of expenses - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• JAMB 1999

The best method of allocating expenses among departments is to?

A. Allocate expenses to each department in proportion to the sales of that department
B. Charge against each department those costs which are within its control
C. Charge expenses against each department in proportion to the purchases of that department
D. Allocate expenses to each section of the department in relation to the number of people

Question 3:

• JAMB 2001

Department F transferred some goods to department G at a selling price. The goods were not sold at the end of the accounting period. Which account is affected at the time of preparing a combined balance sheet?

A. Creditors
B. Debtors
C. Stock
D. Suspense

Question 4:

• JAMB 2002

In a departmental accounting system, which of the following expenses will most likely be apportioned on the basis of turnover?

A. Carriage outwards
B. Carriage inwards
C. Discounts received
D. Returns outwards

Question 5:

• JAMB 2004

How are credit sales by a department treated?

A. The same way as normal debtors' transactions
B. In a different way from normal debtors' transactions
C. As an addition to the production manager's account
D. As an addition to the production managers' account