JAMB Accounting Past Questions & Answers - Page 271

1,351.

In the absence of a sales day book or sales account the credit for sales can be computed from

A.

Creditors control account

B.

Debtors control account

C.

Opening figures of the balance sheet

D.

Closing figures of the balance sheet

Correct answer is B

The sales day book is used in recording credit sales. In the absence of this book, credit sales can be recorded in the debtors' book. Debtors are outsiders with who a business may have transacted business and are owing the business. While creditors are those the business is owing.

1,352.

The principle use of control accounts is to

A.

Localize error within the ledger

B.

Prevent fraud

C.

Increase sales

D.

Record assets and liabilities

Correct answer is A

No explanation has been provided for this answer.

1,353.

The process of allocating the cost of an intangible assets over its useful life is known as

A.

Depreciation

B.

Extraction

C.

Depletion

D.

Amortization

Correct answer is A

No explanation has been provided for this answer.

1,354.

The records of wages due but not yet paid is an example of an adjustment for

A.

Apportionment of revenue between two periods

B.

Recognizing accrued expenses

C.

Recognizing unaccounted revenue

D.

Recognizing prepaid expenses

Correct answer is B

No explanation has been provided for this answer.