JAMB Accounting Past Questions & Answers - Page 55

271.

In government accounting , the method used which records on the basis of financial entity with self balancing books instead of entity of propietorship is?

A.

Virement

B.

Fund accounting

C.

Consolidated fund

D.

Financial regulation

Correct answer is B

Fund accounting is an accounting system for recording resources whose use has been limited by the donor, grant authority, governing agency, or other individuals or organisations or by law. It emphasizes accountability rather than profitability, and is used by Nonprofit organizations and by governments. In this method, a fund consists of a self-balancing set of accounts and each are reported as either unrestricted, temporarily restricted or permanently restricted based on the provider-imposed restrictions.

 

272.

The accounting entries used to record a cheque issued by a business is to?

A.

Debit cash book and credit drawer

B.

Credit cash book and debit drawer

C.

Debit cash book and credit suspense account

D.

Credit cash book and debit suspense account

Correct answer is A

In posting accounting entries, always bear in mind the basic accounting principle of ''for every debit entry, there must be a corresponding credit entry''. In the above question, a business paid out money to its creditor (someone owed by the business) through a check, this means that, the business cash/bank accounts will be debited (take money from) while the drawer (creditor whom is owed by the business) will be credited. 

274.

Mrs. Okoro who lives in the riverine community of Rivers State makes her living through crabbing and fishing. This type of occupation is? 

A.

Commercial

B.

Manufacturing

C.

Service

D.

Extractive

Correct answer is A

Commercial farming occurs when a farm is set up for the sole purpose of producing crops and farm animals for sale, with the sole intention of making a profit. Commercial farms are often larger than regular family farms because economies of scale are richly sought after due to the immense competition involved.