Departmental 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

Departmental accounts re maintained to ascertain the

A. Profits of the entire organization
B. Contribution of each department
C. Expenses of each department
D. Sales of each department

Question 3:

• JAMB 1997

Which of the following are advantages of departmental accounts?
I. The department making the highest profit can be easily determined
II. The capital of the business can be calculated easily
III. Easy knowledge of the sources of funding
IV. Encouragement of healthy rivalry among the various departments

A. I and IV only
B. II and III only
C. II and IV only
D. III and IV only

Question 4:

• JAMB 1998

Which of the following entries is effected by a department when goods are charged to it at selling prices?

A. Stock account is debited
B. Purchases account is debited
C. Stock account is credited
D. Mark-up account is debited

Question 5:

• 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