JAMB Accounting Past Questions & Answers - Page 59

291.

Which of the following should not be adjusted for in the profit and loss account?

A.

Accruals

B.

Inventory

C.

Subscription

D.

Depreciation

Correct answer is C

No explanation has been provided for this answer.

293.

In dealing with incomplete record, fixed assets are posted to___________

A.

Profit and loss account as brought forward figure

B.

Closing balance sheet as carried forward figure

C.

Closing balance sheet as brought forward figure

D.

Profit and loss as carried forward figure

Correct answer is C

Fixed asset are brought forward in closing balance sheet.

294.

The cost price method is applicable when_____

A.

Goods are sold at specific prices

B.

Goods are perishable

C.

Goods attract different gross profit percentage

D.

To disclose gross profit or loss

Correct answer is B

Cost price method is used to enhance quick sales

295.

A partnership deed is used to____________

A.

Promote mutual understanding

B.

Enhance mistrust

C.

Encourage discrepancy

D.

Control funds

Correct answer is A

Partnership deed can be used to:

  i. Indicates terms on which the business corporation us founded

  ii. To form a partnership for the purpose of doing business together

  iii. Prevent future disputes

  iv. Promote mutual understanding

  v. Avoid mistrust