The Advantages And Disadvantages Of The Methods - Accountsprinciplesofaccounts Jamb 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 2011

In a period of declining price, which of the following methods would result in higher profit?

A. FIFO
B. Simple average
C. LIFO
D. Weighted average

Question 3 :

• JAMB 2011

What is the value of stock as at the end of July 10 using FIFO?

A. N14 400
B. N13 300
C. N15 200
D. N12 600

Question 4 :

• JAMB 2012

The LIFO method has an advantage over FIFO in that stocks are valued at

A. Previous prices
B. Current prices
C. Average rates
D. Flat rates

Question 5 :

• JAMB 2013

What type of stock valuation would a vegetable seller adopt in valuing it's product?

A. LIFO
B. FIFO
C. Simple average
D. Weighted average