Capital and recurrent expenditure - 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

Eko Local Government expenditure
Hospital building ---------------------- N200,000
Drugs ---------------------------------- N180,000
Hospital beds and mattresses ------------ N40,000
Doctors' and nurses' salaries ---------- N120,000
Administrative expenses ----------------- N50,000
Capital expenditure is

A. N420,000
B. N380,000
C. N240,000
D. N200,000

Question 3:

• JAMB 1995

Eko Local Government expenditure
Hospital building ---------------------- N200,000
Drugs ---------------------------------- N180,000
Hospital beds and mattresses ------------ N40,000
Doctors' and nurses' salaries ---------- N120,000
Administrative expenses ----------------- N50,000
Recurrent expenditure is

A. N390,000
B. N360,000
C. N350,000
D. N170,000

Question 4:

• JAMB 1998

In a public corporation, the capital expenditure incurred in a financial period is?

A. Spread over the useful life of the assets through depreciation
B. Apportioned at a pre-determined rate stipulated by law
C. Written off in the year in which they occur
D. Merged with recurrent expenditure and reported in one required lump sum

Question 5:

• JAMB 1999

Capital and revenue expenditures of government are usually accounted for under funds which include?

A. A personal advances, technical, special trust and
B. Technical, special trusth and commercial funds
C. Personal advances, treasury clearance and special trusth funds
D. Commercial loans and treasury clearance funds