JAMB Accounting 2015 Objective — Question 46

Question 46 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

The difference between the closure of the books of a branch and those of a separate company is that

A. there is retained earnings account on the branch books
B. the revenue and expense account is closed to the branch current accountCorrect
C. there is no retained earnings account on the branch books
D. the revenue and expense account is not closed to the home office current account

Explanation

A branch always maintains a current account to record its relationship with the head office, unlike a separate company which maintains its own independent accounts.

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