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JAMB Accounting 2021 Objective — Question 8

Question 8 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2021 Objective paper, with the correct answer and a full explanation.

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8. While government uses cash basis non-government organisations use a. Cash basis b. Accrual basis c. Referral basis d. Cash and accrual basis

  • A. Cash basis
  • B. Accrual basisCorrect
  • C. Referral basis
  • D. Cash and accrual basis

Explanation

Non-government organisations use the accrual basis of accounting in recording their transactions, unlike government which uses the cash basis.

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