JAMB Accounting Past Questions & Answers - Page 28

136.

Stationery which will be used over a long period of time is usually recorded as an expense instead of an asset. This concept is called

A.

Entity

B.

Accrual

C.

Realization

D.

Materiality

Correct answer is D

No explanation has been provided for this answer.

137.

The difference between the market value of goods produced and the cost of production is

A.

net profit on goods sold

B.

gross profit on manufacturing

C.

Closing stock of work-in-progress

D.

Prime cost of manufacturing

Correct answer is B

No explanation has been provided for this answer.

138.

The accounting method that reports incomes when earned and expenses when incurred is called 

A.

Accrual accounting

B.

Cash accounting

C.

Fund accounting

D.

Commitment accounting

Correct answer is A

No explanation has been provided for this answer.

139.

Use the information below to answer the question



Gross profit b/d
Less: Salaries and wages
          Electricity
          Depreciation
          Net profit c/d
 

Dept A
   ₦
6,000
1,800
   ?
  600
?
6,000

Dept B
   ₦
4,000
1,200
   ?
   ?
1,600
4,000

Total
    ₦

10,000 
  3,000
  2,000
  1,000
  4,000
10,000

It is the tradition of the organization to apportion expenses in the proportion 60%:40% for A and B respectively.

The depreciation to be charged to department B is

A.

₦500

B.

₦300

C.

₦400

D.

₦600

Correct answer is C

No explanation has been provided for this answer.

140.

Use the information below to answer the question


Gross profit b/d
Less: Salaries and wages
          Electricity
          Depreciation
          Net profit c/d
 

Dept A
   ₦
6,000
1,800
   ?
  600
?
6,000

Dept B
   ₦
4,000
1,200
   ?
   ?
1,600
4,000


Total
    ₦
10,000 
  3,000
  2,000
  1,000
  4,000
10,000

It is the tradition of the organization to apportion expenses in the proportion 60%:40% for A and B respectively.

What is the net profit made by department A?

A.

₦2000

B.

₦3600

C.

₦3000

D.

₦2400

Correct answer is D

No explanation has been provided for this answer.