JAMB Accounting Past Questions & Answers - Page 275

1,371.

In preparing accounting records, the owner of a business and the business are treated as

A.

The same person

B.

Having business relationship

C.

Separate legal entities

D.

Partners

Correct answer is C

No explanation has been provided for this answer.

1,372.

The most important reason for studying accounting is that

A.

The information provided by accounting is useful in making decision

B.

Accounting plays an important role in the society

C.

The study of Accounting leads to challeging career

D.

Accounting provides gross profit information

Correct answer is A

No explanation has been provided for this answer.

1,373.

A government accounting systems must make sure that

A.

Revenue exceeds expenditure

B.

All applicable legal provisions are complied with

C.

Capital expenditure is equal to revenue

D.

Capital project fund is tied to recurrent expenditure

Correct answer is B

No explanation has been provided for this answer.

1,374.

Eko Local Government expenditure
Hospital building ---------------------- N200,000
Drugs ---------------------------------- N180,000
Hospital beds and mattresses ------------ N40,000
Doctors' and nurses' salaries ---------- N120,000
Administrative expenses ----------------- N50,000
Recurrent expenditure is

A.

N390,000

B.

N360,000

C.

N350,000

D.

N170,000

Correct answer is A

Recurrent expenditure consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation). Hence we have;

180,000 + 40,000 + 120,000 + 50,000 =390,000