Branch Accounts - 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 1995

The Asa branch of Emene company Ltd, made a sales of N549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were N34,400 and there were no discrepancies, what should be the profit of the branch for the period?

A. N6,500
B. N64,600
C. N85,380
D. N514,600

Question 3:

• JAMB 1995

Which of the following statement is correct about the head office current account and the branch current account?

A. Both always have debit balances
B. Both always have credit balances
C. The head office current account has a credit balance while the branch current account has a debit balance
D. The head office current account has a debit balance while the branch current account has a credit balance

Question 4:

• JAMB 1998

The difference between the closure of the books of a branch and those of a separate company is that?

A. There is retained earnings account on the branch books
B. The revenue and expenses account is closed to branch current account
C. There is no retained earnings account on the branch
D. The revenue and expenses account is not closed to the home office current account

Question 5:

• JAMB 2000

(i) Meet growth and diversification need.
(ii) Reach out to particular customers or markets
(iii) Comply with some regulatory directives
(iv) Increase employees' income.
Which of the reasons above do companies consider in establishing branches?

A. I and ii
B. I, ii and iii
C. Ii, iii and iv
D. Iii and iv