JAMB Accounting Past Questions & Answers - Page 137

683.

The total cash and cheques received from customers in a control account is derived from the

A.

Purchases day book

B.

Cash book

C.

Income and expenditure account

D.

Sales journal

Correct answer is B

No explanation has been provided for this answer.

684.

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

Correct answer is B

FIFO is a method of stock valuation that stands for 'First-In, First-Out'. This assumes that the first (oldest) units of stock produced or received are also the first ones that are sold. This is also suitable for perishable items

 

685.

Given:
Opening capital - #1,500
Capital introduced - # 500
Profit for the year - # 800
Cash drawings - # 250

Calculate the closing capital.

A.

#2,550

B.

#2,500

C.

#2,350

D.

#2,250

Correct answer is A

Closing capital = Opening Capital + Additional Capital + Profit - Less Loss - Drawings

1500 + 500 + 800 - 250 = 2550