JAMB Accounting Past Questions & Answers - Page 187

931.

One of the benefits of book-keeping records is that they?

A.

Give prospective investors accurate and direct information for decisions-making

B.

Provide the public and creditors with details of the operations of an entity

C.

Give legal backing to all the transactions undertaken by a business entity

D.

Provide information without which the task of management would be difficult

Correct answer is A

No explanation has been provided for this answer.

932.

If Mr. Ajasin paid his creditors N5000 out of N20,000 owed, what would be the effect of this transaction on the accounting equation?

A.

A decraese in the total asssets by N5000

B.

An increase in the total liabilities and owners' equity by by N15,000

C.

An increase in the total assets by N15,000

D.

A decrease in owners' equity by N5000

Correct answer is A

No explanation has been provided for this answer.

935.

The fourth stage of the accounting information system is?

A.

Recording

B.

Interpreting

C.

Summarizing

D.

Classifying

Correct answer is C

No explanation has been provided for this answer.