JAMB Accounting Past Questions & Answers - Page 114

566.

Specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting financial statements are known as ---------------------

A.

Financial accounting

B.

Accounting policies

C.

Cost accounting

D.

Accounting conventions

Correct answer is B

No explanation has been provided for this answer.

567.

Goods stolen at the branch is debited to

A.

Branch stock account

B.

Defalcations account

C.

Branch debtors account

D.

Branch adjustment account

Correct answer is D

No explanation has been provided for this answer.

568.

The income and expenditure account of a club is the same as

A.

Single entry account

B.

A profit and loss account

C.

A trading account

D.

A cash book

Correct answer is B

This is because the income and expenditure account just like the profit and loss account shows the income to ascertain surplus or deficit.

569.

Dangote acquired Dantata’s business for N350,000. The total asset work were N820,000 and liabilities amounted to N 640,000

The double entry to record the goodwill in the books is debt

A.

Purchase of business account and credit cash account

B.

Goodwill account and credit purchase of business account

C.

Cash account and credit goodwill account

D.

Goodwill account and credit cash account

Correct answer is B

when there is excess of purchase consideration over net assets, the accounting entries is to debit goodwill account as the receiving account and credit purchase of business account as the giving account.

 

570.

Which of the following is shown in the profit and loss appropriation account of a company?

A.

Interest charges

B.

Depreciation

C.

Directors employments

D.

Dividends

Correct answer is D

In general accountingappropriation accounts are mainly prepared by partnerships and limited liability companies (LLCs). They are an extension of theprofit and loss statement, showing how the profits of a firm are allocated to shareholders or to increase reserves indicated in the balance sheet. it usually contains dividends, retained earnings, goodwill etc