JAMB Accounting Past Questions & Answers - Page 17

81.

The authority warrant issued prior to the approval of the appropriate bill at the begining of the year

A.

Contingencies

B.

Reserved expenditure warrant

C.

Annual general warrant

D.

Provisional general warrant

Correct answer is D

Provisional general warrant is used to release fund for the payment of emolument and other services before the budget is approved. It will be in operation for four months.

 

82.

The use of three column cash book is determined by

A.

Trade discount

B.

Cash transaction

C.

Bank transaction

D.

Cash discount

Correct answer is D

The cash discount is allowed for prompt payment of an account or for payment within a specified period of time. It is divided into discount allowed and discount received.

 

83.

The following are importance of branch account except

A.

It allows fraud and wastage of resources

B.

It assist the organization to determine the performance of a branch manager

C.

It enable the organization to determine the branch that is making either profit or loss

D.

It allows proper control over the branch by the head office

Correct answer is A

The importance and objectives of branch account are:
- to access the performance of the branches
- to prevent wastage
- to prevent fraud and other malpractices
- to ascertain the profit or loss for each branch

 

85.

Which of the following errors will affect the trial balance total?

A.

Omission of sales of ₦3000 and purchases of ₦2000

B.

Posting discount allowed to the debit side of discount allowed account

C.

Omission of one account from the list when extracting the ledgers

D.

Failure to post sales of ₦2000 and purchases of ₦2000

Correct answer is A

No explanation has been provided for this answer.