JAMB Accounting Past Questions & Answers - Page 257

1,281.

A business transaction is recorded in the books of account when the

A.

Owner of the business invests his N10,000 in another company

B.

Business retains part of ofits profits for future expansion purposes

C.

Business invest applies for overdraft facilities from its bankers

D.

Owner of the business collects N5,000 from the accountant

Correct answer is D

When the owner of the business withdraws money from the business for personal use, it is called ''drawings'' and must be recorded for future reference.

Any type of drawings reduces the capital or owner's equity of a business, so it is important to keep track of these drawings and manage them within your accounts. However, drawings are not considered a business expense.

 

1,282.

An advantage of the use of the voucher system is that it?

A.

Reduces the number of cheques that will be writen during any given period

B.

Provides a highly flexible system for handling unusual transactions

C.

Provides a comprehensive record of business done with particular suppliers

D.

Ensure that every expenditure is reviewed and verified before payment is made

Correct answer is D

No explanation has been provided for this answer.

1,283.

Responsibility accounting is particularly concerned with

A.

Historical accounting

B.

Controllable costs

C.

Storekeeping

D.

Valuation of stock

Correct answer is B

No explanation has been provided for this answer.

1,284.

Cost reports for the intention of management should reflect?

A.

As much details as possible

B.

Summary figures only

C.

Details of non-controllable expenses

D.

Cost and comparable data useful in decision-making

Correct answer is D

No explanation has been provided for this answer.

1,285.

The Act establishing the institute of Chartered Accountants of Nigeria (ICAN) came into force on?

A.

Ist September, 1960

B.

Ist October, 1960

C.

Ist October,1963

D.

Ist , September,1965

Correct answer is D

No explanation has been provided for this answer.