JAMB Accounting Past Questions & Answers - Page 26

126.

If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to

A.

Have a higher cost of goods sold

B.

Have a higher value of closing stock

C.

Have a higher gross profit

D.

Pay higher income tax

Correct answer is C

No explanation has been provided for this answer.

127.

Accounting evolved out of the need of businesses for

A.

profit making

B.

record keeping

C.

increasing sales

D.

obtaining finance

Correct answer is A

No explanation has been provided for this answer.

130.

Reducing balance method charges depreciating as fixed percentage of the

A.

net book value of asset

B.

cost of asset

C.

market value of asset

D.

accumulated depreciation on asset

Correct answer is A

No explanation has been provided for this answer.