Preparation of final accounts from incomplete records - 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 starting point for the production of accounts from incomplete records is to

A. Ascertain the total sales
B. Compute the opening stock of goods sold
C. Verify the total purchase
D. Prepare an opening statement of affairs

Question 3:

• JAMB 1995

Subscription in arrears are

A. Credited to the income and expenditure account and shown as a liability in the balance sheet
B. Debited to the income and expenditure account and shown as an asset in the balance sheet
C. Credited to the income and expenditure account and shown as a liability in the balance sheet
D. Debited to the income and expenditure account and shown as a liability in the balance sheet

Question 4:

• JAMB 1995

Where a non-profit making organization prepares the account using accruals basis of reporting, the statement showing how well the organization is doing is the

A. Appropriation account
B. Balance sheet
C. Income and expenditure account
D. Receipts and payment account

Question 5:

• JAMB 1995

A member of a club paid N1,000 as is subscription for 1993 and N1,200 as subscription for 1992. If the financial year of the society ended on 31st December 1993, the N1,200 subscription will be treated in the balance sheet as

A. Current asset
B. Current liability
C. Capital
D. Profit