JAMB Accounting Past Questions & Answers - Page 288

1,436.

The financial position of an organization at a particular time can be ascertained from the

A.

Statement of sources and application of funds

B.

Statement of retained earnings

C.

Balance sheet

D.

Profit and loss account

Correct answer is C

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity. It simply shows the financial position of a business for a particular given period.

1,437.

When preparing a bank reconciliation statement, which of the following is deducted from the balance per bank statement?

A.

Bank charges

B.

Uncleared cheques

C.

Returned cheques

D.

Unpresented cheques

Correct answer is D

No explanation has been provided for this answer.

1,438.

When is a petty cash account debited?

A.

When the fund is established and every time money is spent

B.

When the fund is established and every time it is replenished

C.

When the fund is established and when the size of the float is decreased

D.

Every time money is drawn from the petty cash

Correct answer is B

No explanation has been provided for this answer.

1,439.

The discount column of a three column cashbook is not balanced off but periodically transferred to the discount account because discounts

A.

Are not important in cashbooks

B.

Are cash items only

C.

Do not form part of double entry

D.

Are used for bank reconciliation

Correct answer is C

No explanation has been provided for this answer.

1,440.

The suspense account is used to correct book-keeping error where the

A.

Amount involved is quite significant

B.

Item involved is not material

C.

Item involved is unknown

D.

Error does not affect the agreement of the trial balance

Correct answer is C

Suspense accounts are used when your trial balance is out of balance or when you have an unidentified transaction. The suspense account is a general ledger account that acts as a holding account until the error is discovered or the unknown transaction is identified.