JAMB Accounting 2022 Objective — Question 16

Question 16 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2022 Objective paper, with the correct answer and a full explanation.

16. The similarity between the head office current account and the branch current account is that

A. (A) The head office current account has a debit balance while the branch current account has a credit balance
B. (B) The head office current account has a credit balance while the branch current account has a debit balanceCorrect
C. (C) Both always have credit balances
D. (D) Both always have debit balances

Explanation

At the head office, the branch is more or less like a debtor, so the head office account has a credit balance while the branch's current account (recording the head office) has a debit balance.

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