The Final Accounts of a Sole Trader - 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

The financial position of an organization at a particular time can be ascertained from the

A. Statement of sources and application of funds
B. Statement of retained earnings
C. Balance sheet
D. Profit and loss account

Question 3:

• 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 4:

• 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 5:

• 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