All 40 questions from the Joint Admissions and Matriculation Board (JAMB) Accounting 2016 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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The impersonal account is subdivided into
Impersonal account can be divided into real account such as asset account and nominal account such as debtors account.
When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at
When goods are sent to branch at cost plus mark-up, the goods must not be sold below the mark-up price.
Which of the following is the capital reserve of a company?
Share premium is a capital reserve because; it comes once in a while, there are stipulated thing that it can be used for.
An increase in government expenditure within a year is taken care of by means of
Supplementary estimate is used to adjust for increment in government budget within a year.
Given: Drawings #3,500; Net loss #2,500; Capital 1.1.2007 #35,000; Additional capital #10,000. The adjusted capital as at 31.12.2007 is
Adjusted capital = 35,000+10,000-2,500-3,500 = #39,000.
Balance sheet of a business disclose information that can be used for
Balance sheet shows the financial position of a business concern. Knowing the financial position can help management of the business to make decisions.
Debtors in the balance sheet of Onoja Bakery and Sons totalled #800,000. if bad debt is normally 5%, find the amount for sundry debtors after bad debt
Sundry debtor = 95% × 800,000 = #760,000.
When stock withdrawn for personal use is taken care of in the trading account, it will _____ profit
When goods are withdrawn is removed from cost of goods available for sale, it will increase profit.
The difference between book keeping and accounting is that
Book keeping records data while accounting interprets it.
The trader's capital in a single entries system is ascertained by preparing
The statement of affairs is used to ascertain the capital of a business that has single entry.
A business organization prepares departmental account in order to
The departmental account helps management know which department is performing and which is not.
The major sources of revenue for state and local government is
Statutory allocation is the amount the federal government allocates to the state government and the local government (per official key, the marked answer for this question is C: taxes and levies).
Given: Balance as per cashbook #2,970; Bank charges #220; Unpresented cheques #3,950; Uncredited cheques #4,178; Direct debit by bank #1,000. Calculate the adjusted cashbook balance
Adjusted cash book: Bal b/d 2,970; Less bank charge 220; Less direct debit 1,000 = Bal c/d 1,750.
I. The amount of the imprest is the same from one organization to another. II. At the end of a fixed period, the petty cashier received a fixed sum of money III. At the end of a period, the petty cashier is reimbursed with the amount spent in that period IV. The system is a method by which a measure of control is kept on petty cash expenses. Which of the following is correct about the imprest system?
The petty cash is always reimbursed with amount spent during the period. Also, the imprest keep check on petty expenses.
Which of the following condition would attract credit and debit notes to be used?
When a buyer is overcharged, credit note is used. If the buyer is undercharged, the debit note is used.
Opening balance of Dika's company was #12,202, closing balance #15,300, total cash received during the period #40,000. What was the amount of cash paid during the same period
Cash book: Bal b/d 12,202 + 40,000 = 52,202; Payments 36,902; Bal c/d 15,300; 52,202-15,300=36,902.
The effect of overstating revenue expenditure in the profit and loss account is that the
When expenditures are overstated in the profit and loss account, the net profit for the period will be understated.
The records of super store show a loan of #14,000 from Bala, Creditor #8,000 and assets #190,500. What is the firm's capital?
Capital = assets - liabilities; 190,500-14,000-8,000=168,500.
The ratio that gives the indication of the efficiency of a firm's sales with respect to gross profit is
Gross profit margin is the ratio used to measure the relationship between gross profit and sales.
A receipt is an evidence of
Receipts show the evidence that a particular transaction has been settled.
An organization which has record of only personal accounts is said to be operating on the basic of
If a business keeps only personal accounts, then its records cannot be complete. Thus, the business is operating on a single entry basis.
The cost of acquiring fixed assets and bringing then into the firm is a
The cost of the asset and related cost to get it in use will form part of the capital expenditure of acquiring the asset.
When the purchase consideration is lower than the net asset, the buyer has gained the advantage of
When purchase consideration is lower than the net asset of the business, then the business has gain capital reserve.
The major advantage of the journal proper is that it
Journal proper helps in the preparation of the balance sheet.
Which of the following is a credit item in creditors ledger control account?
Credit purchases will be added to the opening creditor which is a credit balance.
Which of the following is not a method of depreciation?
Accumulation is not a method of depreciation while the rest are.
Badge Plc issued 450,000 ordinary shares of 50k each at #1.50 per share. Application and allotment 45k; 1st call 50k; 2nd call 55k. Determine the amount received on final call.
The second call monies which is also the final call brought 55k×450,000=#247,500.
The instrument used in analysis and interpretation of financial statement is the
Balance sheet gives the summary of balances. It is usually used to analyse the financial statement.
The document that provides instant information to firms on their transactions with bank are
Bank statement is the document that provides information to the customers as regards transactions on their accounts with the bank.
A discount that is allowed to encourage a debtor to pay off his debt within a period is the
Cash discount is usually given to encourage prompt payment for goods and services.
If one of the partners is insolvent, the balance on his capital account will be
A partner will become insolvent when its capital account has a debit balance.
Share premium can be used to i. Write off preliminary expenses ii. Give loans to employees, iii. Pay dividends, (a) i and iii only (b) i and iii only (c) ii and iii only (d) i only
Share premium can be used to write-off the preliminary expenses. Preliminary expenses are formation expenses.
A company has 5% debentures of #100,000, ordinary share capital of #900,000, and preference shares of #250,000. The debenture interest would amount to
Debenture interest is 5% of #100,000 which is #5,000.
Public sector accounting is based on
Public sector accounting operates on cash basis as all accounts are opened and closed within a year.
Government accounting is basically
Most government accounts are fund accounts.
ICAN stands for
ICAN stands for Institute of Chartered Accountants of Nigeria (per official key, D is the marked answer).
ICAN was established in
ICAN was established by ICAN act of 1st September, 1965.
The initial cost of acquiring a fixed asset should be treated as
The accounting entry for purchase of fixed assets is Dr: asset account Cr: bank/cash account.
Which of the following is not relevant in determining the adjusted cash book balance?
Uncredited cheques are used in the bank reconciliation statement, not in determining the adjusted cash book balance.
The difference between prime cost and cost of goods manufactured is the
Cost of goods manufactured is the addition of prime cost and factory overhead. Thus, the difference between cost of goods manufactured and prime cost will give factory overhead.
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