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JAMB Accounting 2015 Objective — Question 50

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

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If a monthly insurance premium is remitted to a company by the state government, the initial deductions from employees are recorded in

  • A. the General fund
  • B. Agency fund
  • C. Special fundCorrect
  • D. General long-term fund

Explanation

Insurance premiums remitted by a state government on behalf of employees are always kept in a special fund account.

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