JAMB Accounting Past Questions & Answers - Page 111

551.

The process of cost apportionment is carried out so that

A.

Indirect costs may be controlled

B.

Cost units could gather overhead as they pass through cost centres

C.

Variable costs may be controlled

D.

Common costs are shared among cost centres

Correct answer is D

Cost apportionment is the sharing of commonly incurred expenses proportionately where two or more cost centres are involved

552.

To realize an asset means to

A.

Mortgage it

B.

Open its account in the ledger

C.

Turn it to cash

D.

Give it out as a collateral

Correct answer is C

Realization means when assets are disposed for cash as at the time of dissolution

553.

The ware and tear of a fixed assets of a company which is chargeable to company’s financial statement is called ------------------------------

A.

Appreciation

B.

Amortization

C.

Provisions

D.

Depreciation

Correct answer is D

Depreciation is the reduction in the service potential of an asset as a result of wear and tear.

 

554.

The imprest of a petty cashier is N2450
Expenses on Printing 420
Cleaning 250
Stamp and postage 175

How much was received to maintain the imprest at the end of the month?

A.

N1,605

B.

N875

C.

N2,450

D.

N1,300

Correct answer is B

The imprest system is a form of financial accounting system. The most common imprest system is the petty cash system. The base characteristic of an imprestsystem is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.

450 + 250 +175 = 875
the imprest will be reimbursed with the amount that was spent which is 875