JAMB Accounting Past Questions & Answers - Page 117

581.

The basis of accounting for public sector is

A.

Accrual basis

B.

Cost basis

C.

Revenue basis

D.

Cash basis

Correct answer is D

This is the basis for recording in government accounting where revenue are recorded when cash is received.

582.

The following account are prepared when goods are sent to branch except

A.

Branch stock

B.

Goods set to branch account

C.

Branch adjustment account

D.

Branch debtors account

Correct answer is D

Branch debtors account is used to exercise control over branch debtors. It is maintained when the branch is allowed to sell goods on credit. This account records transactions with the branch debtors and is prepared like sundry debtors account.

583.

Sales ledger control account contains the total amount in respect of

A.

Creditors

B.

Debtors

C.

Investors

D.

Shareholders

Correct answer is B

The sales ledger control account is used to monitor the amounts owed by customers to your business. 

The sales ledger control account is also known as debtors control account and includes all entries of debtors as if only one existed.

584.

The act of making necessary adjustment after comparing the actual cost with targeted cost is cost ----------------------------

A.

Conversion

B.

Control

C.

Allocation

D.

Analysis

Correct answer is B

No explanation has been provided for this answer.

585.

One of the items listed below will not be found in a company’s memorandum and article of association. Which is it?

A.

Objects and their alteration

B.

Location of business

C.

Bank signatories

D.

Powers of directors

Correct answer is C

The memorandum of association is the document that sets up the company and the articles of association set out how the company is run, governed and owned. The articles of association includes the responsibilities and powers of the directors and the means by which the members exert control over the board of directors. 

The MOA of a company contains the object for which the company is formed. It identifies the scope of its operations and determines the boundaries it cannot cross.