1997 - JAMB Accounting Past Questions & Answers - page 1

1
The most important reason for studying accounting is that
A
the information provided by accounting is useful in making decision
B
Accounting plays an important role in the society
C
the study of Accounting leads to challeging career
D
Accounting provides gross profit information
CORRECT OPTION: a
2
In preparing accounting records, the owner of a business and the business are treated as
A
the same person
B
having business relationship
C
separate legal entities
D
partners
CORRECT OPTION: c
3
Creditors use Accounting information for the purpose of
A
planning sales to a company
B
controlling a company's affairs
C
investing in a company
D
assessing a company's liquidity
CORRECT OPTION: d
4
The instrument that are generated when firms enter into business transactions with others are called
A
purchase document
B
journals
C
source documents
D
invoices
CORRECT OPTION: c
5
The document that is used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as
A
credit note
B
debit note
C
invoice
D
voucher
CORRECT OPTION: a
6
The effect of the payment of liability is that it
A
increase both assets and liabilities
B
increase assets and decrease liabilities
C
decrease assets and increase liabilities
D
decrease both assets and liabilities
CORRECT OPTION: d
7
Books of original entry are used for
A
recording business transactions
B
the adjustment of accounts
C
reminding the book keeping to post transactions in the ledger
D
informing the bookkeeper about the state of affairs
CORRECT OPTION: a
8
The term 'posting' in Accounting refers to
A
recording entries in the journal
B
transferring the balance in the ledger to the trial balance
C
tracing amounts from the journal to the ledger to find errors
D
transferring entries to the ledger from the journal
CORRECT OPTION: d
9
Erroneous rearrangement of financial figures such as writing N624 as N 264 is called
A
transposition
B
principle
C
commission
D
omission
CORRECT OPTION: a
10
Which of the following demonstrates the imprest system?
A
Float → expenses paid → cash in bank → float
B
Float → cash from bank → expenses paid → float
C
Float → expenses paid→ cash from bank → float
D
Float → cash in bank → expenses paid → float
CORRECT OPTION: c
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