JAMB Accounting Past Questions & Answers - Page 290

1,446.

Accounting information is used by investors and creditors of a company to predict

A.

Future cash flows of the company

B.

Future tax payments of the company

C.

Potential merger candidates for the company

D.

Appropriate remunerations for the company's staff

Correct answer is A

No explanation has been provided for this answer.

1,447.

The accounting convention which states that profit must not be recognized until realized while all losses should be adequately provided for it termed

A.

Materiality

B.

Objectivity

C.

Consistency

D.

Conservatism

Correct answer is D

No explanation has been provided for this answer.

1,448.

Assigning revenues to the accounting period in which goods were sold or services rendered and expenses incurred is known as

A.

Passing of entries

B.

Consistency convention

C.

Matching concept

D.

Adjusting for revenue

Correct answer is C

No explanation has been provided for this answer.

1,449.

The term "accounting period" is used to refer to the

A.

Time span during which taxes are paid to the inland revenue board

B.

Budget period, usually one year, relied on by the accountant

C.

Time span, usually one year, covered by financial statement

D.

Period within which debtors are expected to settle accounts

Correct answer is C

An accounting period definition is a period of time in which a company prepares its financial report. It could be yearly, bi-annually, monthly, weekly, or daily.