JAMB Accounting Past Questions & Answers - Page 286

1,426.

Goodwill appears in the books of a business only if it has been

A.

Purchased at a certain price

B.

Raised in connection with the admission of a new partner

C.

Raised to account for the true value of a business on the death of a partner

D.

Raised in order to prevent the balance sheet showing that the business is insolvent

Correct answer is B

No explanation has been provided for this answer.

1,427.

The major distinguishing element between the final accounts of a partnership and a sole trader is the

A.

Drawings account

B.

Appropriation account

C.

Capital account

D.

Creditors account

Correct answer is B

No explanation has been provided for this answer.

1,428.

The net profit from a trading account of a non-profit making organization would be treated as income in the

A.

Income and expenditure account

B.

Receipt and payment account

C.

Balance sheet

D.

Statement of affairs

Correct answer is A

No explanation has been provided for this answer.

1,429.

The major difference between the receipt and payment account and the income and expenditure account is that while the former.

A.

Is kept by the treasurer, the latter is not

B.

Deals with all receipts and payments in the year regardless of the time it relates to, the latter is for just that year

C.

Is a T-account, the latter is not

D.

Is not in the ledger, the latter is

Correct answer is B

No explanation has been provided for this answer.

1,430.

Which of the following categories of labour cost will be classified as direct?

A.

Accountant's salary

B.

Factory workers' salary

C.

Managing director's salary

D.

Cashier's salary

Correct answer is B

No explanation has been provided for this answer.