JAMB Accounting 2007 Objective — Question 21

Question 21 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

The gross profit disclosed in the branch stock adjustment account represents

A. head office profit
B. unrealized profit
C. estimated profit
D. branch profitCorrect

Explanation

The branch stock adjustment account reconciles the difference between head office and branch accounts; the gross profit it reports represents the branch's profit.

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