JAMB Accounting 2015 Objective — Question 31

Question 31 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

The limitation of the receipts and payments account arises mainly because of the reliance on

A. cash movement as evidence of transactionCorrect
B. the accounting officer to report
C. the capital account of the organization
D. the transaction papers as evidence of transaction

Explanation

Receipts and payments accounts are essentially cash books; they rely heavily on cash movement as evidence of a transaction, ignoring accruals.

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