JAMB Accounting Past Questions & Answers - Page 109

541.

Equity shareholders' fund is

A.

N133,000

B.

N120,000

C.

N113,000

D.

N100,000

Correct answer is A

No explanation has been provided for this answer.

542.

The purpose of a trading account is to ascertain

A.

Sales

B.

Carriage outwards

C.

Gross profit or loss

D.

Net profit or loss

Correct answer is C

The trading account is primarily prepared to ascertain gross profit or loss.

543.

The accounting concepts which assumes that business will continue to be in existence into the foresee able future is

A.

Periodicity

B.

Business entity

C.

Dual aspect

D.

Going concern

Correct answer is D

This concept is the only one among the listed that assumes that the business will continue to operate for an indefinitely long period of time.

544.

Which of the following is not a feature of accounting information?

A.

Timeliness

B.

Accuracy

C.

Completeness

D.

Affordability

Correct answer is D

Accounting information and report must be accurate, complete and timely. Money spent to obtain an information is not as important as how useful are those information in taking decisions.

545.

Capital reserves includes the following except

A.

Revaluation surplus

B.

Pre-incoporation profit

C.

Share premium

D.

General reserves

Correct answer is D

General reserves is not a form of capital reserves. It is considered as revenue reserves