Income statement (Trading and profit and loss account) - 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 1994

Given;
Purchases = N20,000
Sales = N40,000
Carriage inwards = N5,000
Carriage outwards = N5,000
Opening stock = N10,000
Closing stock = N5,000
What is the cost of goods sold?

A. N30,000
B. N25,000
C. N20,000
D. N15,000

Question 3:

• JAMB 1994

The net profit or loss for the year is determined in profit and loss account after

A. Deducting purchases from sales
B. Deducting cost of goods sold from sales and adding administrative expenses
C. Adding commissions received to gross profit
D. Eliminating all expenses from gross profit and adding any other income

Question 4:

• JAMB 1994

If a bad debt previously written off is subsequently repaid, the amount collected is recorded as an

A. Income in the profit and loss account
B. Income in the balance sheet
C. Additional cash in the profit and loss account
D. Expense in the balance sheet

Question 5:

• JAMB 1995

The following represent extracts from the trading account of a retail outlet for a given month:
Opening stock N2,400
Closing stock N6,400
Other expenses N2,000
Sales N11,000
Profit N900
What is the purchase figure for the month?

A. N13,000
B. N12,100
C. N12,000
D. N11,200