JAMB Accounting Past Questions & Answers - Page 82

406.

One of the objectives of accounting is that it can be used for

A.

Business decision making

B.

Due process in business

C.

Motivating employees

D.

Determining the work force

Correct answer is A

Objectives of accounting in any business are; systematically record transactions, sort and analyzing them, prepare financial statements, assessing the financial position, and aid in decision making with financial data and information about the business.

 

407.

Departments K Y
Opening 2,500 800
Purchases 120,000 100,000
Sales 180,000 200,000
Salary 8,000 30,000
Closing stock 3,000 1,500
Rate expenses of 1,500 are apportioned in the ratio 1:2

The gross profit for K is

A.

N60,700

B.

N23,500

C.

N60,500

D.

N82,500

Correct answer is C

Sales - Cost of Goods Sold = Gross Profit

COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.

COGS = 2,500, +  120,000 - 3,000 = 119,500

gross profit for K = 180,000 - 119,500 = 60,500
 

408.

The major advantage of the journal proper is that it

A.

Helps in the preparation of the balance sheet

B.

Prevents fraud and theft of item of the business

C.

Serves as a book of instruction to the bookkeeper

D.

Help the banking industry to be efficient

Correct answer is B

The advantages of using a journal in the recording process is, it discloses in one place the complete effects of a transaction, it provides a chronological record of transactions, & it helps to prevent or locate errors because the debit and credit amounts for each entry can be easily compared.

 

409.

The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm's capital?

A.

#184,000

B.

#196,500

C.

#212,000

D.

#168,500

Correct answer is D

The net working capital formula is calculated by subtracting the current liabilities from the current assets. 
Assets = 190,500
liabilities = 14,000 + 8,000 = 22,000
190,500 - 22,000 = 168,000 (capital)