JAMB Accounting Past Questions & Answers - Page 282

1,406.

A trail balance is usually prepared by an accountant from account balances in the ledger for the purpose of

A.

Classifying accounts in the ledger

B.

Testing arithmetical accuracies of the ledger account balances

C.

Identifying the balance sheet items

D.

Providing a basis for establishing the accountant's competence

Correct answer is B

No explanation has been provided for this answer.

1,407.

One major advantage of ledger is that it

A.

Is a book of original entry

B.

Is only accessible to share holders during liquidation

C.

Removes the need for preparing a balance sheet after each transaction

D.

Can be used by any type of business

Correct answer is D

No explanation has been provided for this answer.

1,408.

Diamond Ringo business was started when Mr. Diamond brought in a cheque of N500,000, which was paid into the bank account.
Which of the following entries properly records the transaction?

A.

Cash account was credited with N500,000 and capital account was debited with N500,000

B.

Bank account was debited with N500,000 and capital account was credited with N500,000

C.

Bank account was accredited with N500,000

D.

Mr. diamond acount was debited with N500,000 and the cheque account was credited with N500,000

Correct answer is B

No explanation has been provided for this answer.

1,409.

Which of the following transaction is BEST recorded in the general journal?

A.

Payment of rent with cheque

B.

Purchase of stock with cash

C.

Purchase of an asset on credit terms

D.

Transfer of cash from head office branch

Correct answer is D

No explanation has been provided for this answer.