Objectives of 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 2004

A rapidly growing business organization with multiple units that is interested in comparing the performances and weaknesses of each unit should adopt?

A. Manufacturing accounts
B. Consolidated accounts
C. Departmental accounts
D. Joint venture accounts

Question 3:

• JAMB 2005

Departmental accounts are prepared to aid the comparison of the?

A. Previous year's transactions
B. Daily profits
C. Workers' performances
D. Management performances

Question 4:

• JAMB 2006

Departmentalization of accounts is useful because it shows the?

A. Overall performance of a firm
B. Price per unit of a product
C. Cost per unit of a product
D. Overall performance of a division

Question 5:

• JAMB 2008

The main reason for adopting a departmental account is to?

A. Record transactions for each department for betterdocumentation
B. Tackle any recording problem as a result of expansion
C. Continuously evaluate the profitability of different departments
D. Ensure that departmental mangers are adequately monitored