JAMB Accounting Past Questions & Answers - Page 71

351.

Processed data is only useful to user if it is

A.

Complex

B.

Quantitative

C.

Relevant

D.

Qualitative

Correct answer is C

First thing to be considered when gathering data is the relevant and usefulness of the data or information before considering the qualitative aspect and other things
Relevant : even if the information of data is not processed, if the processed data is relevant, it will be useful to the user

352.

What is the main purpose of transaction file?

A.

To record assets and liabilities

B.

To update income and expenses

C.

To update master files

D.

To make organization decision

Correct answer is C

The main purpose of organization file is to update the master file of the organization

353.

A double entry for a transaction that offsets one amount against another on both sides of the cashbook is a

A.

Original entry

B.

Contra entry

C.

Prime entry

D.

Contract entry

Correct answer is B

Contra entry is used to offset amount or same transaction against another on both side of the cashbook.

 

354.

Which of these is the subsidiary book for return inwards?

A.

Sales day book

B.

Sales return journal

C.

Purchases day journal

D.

Cash book

Correct answer is B

Sales return journal otherwise called return inward book is meant for recording of all good returned by customer

355.

In the period of rising prices, which method of stock valuation is most appropriate?

A.

Last in First Out

B.

Weighted average

C.

First in First Out

D.

Simple average

Correct answer is A

Last in first out:when price rise it results to lower bet income because the leftover inventory might be extremely old and perhaps obsolete