JAMB Accounting Past Questions & Answers - Page 141

701.

The Petroleum Technology Development Fund is under the

A.

General fund

B.

Contingency fund

C.

Trust fund

D.

Capital fund

Correct answer is D

No explanation has been provided for this answer.

702.

The book into which all types of a ministry's expenditure are recorded is the

A.

Ledger book

B.

Payment book

C.

Vote book

D.

Expenditure book

Correct answer is C

A vote book is an accounts book which is used to record. and monitor expenditure in the public sector.

 

703.

Which of the following is a source of revenue to the federation account?

A.

Market fees

B.

Bicycle licences

C.

Tarrifs

D.

Property rates

Correct answer is C

Tariff is a tax or duty to be paid on a particular class of imports or exports. It is a source of revenue to the government because these taxes are paid to the government of the importing country.

 

704.

Purchasers - #44,880
Sales - #85,850
Trade creditors - #12,250
Trade debtors - #24,000
Accrued expenses - # 350
Prepaid expenses - # 700
Stock 1/1/2006 - #25,120
Stock 31/12/2006 - #27,840

Determine the number of times stock was turned over during the period to the nearest figure.

A.

1

B.

2

C.

3

D.

4

Correct answer is B

Turnover ratio is the cost of goods sold divided by the average stock for the same period

Cost of goods sold = opening stock + purchases - closing stock
25,120 + 44,880 - 27,840 = 42,160

Average stock = opening stock + closing stock / 2
25,120 + 27,840 = 52960 / 2 = 26,480

Turn over = 42,160 / 26,480 = 1.59 times Approximately 2 times

 

705.

Purchasers - #44,880
Sales - #85,850
Trade creditors - #12,250
Trade debtors - #24,000
Accrued expenses - # 350
Prepaid expenses - # 700
Stock 1/1/2006 - #25,120
Stock 31/12/2006 - #27,840

Calculate the acid test ratio.

 

A.

1:94:1

B.

1:96:1

C.

1:1:94

D.

1:1:96

Correct answer is B

Acid test ratio = cash + cash equivalents + marketable securities + current accounts receivables / Total current liabilities