1998 - JAMB Accounting Past Questions and Answers - page 1

1
The Act establishing the institute of Chartered Accountants of Nigeria (ICAN) came into force on?
A
Ist September, 1960
B
Ist October, 1960
C
Ist October,1963
D
Ist , September,1965
correct option: d
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2
Cost reports for the intention of management should reflect?
A
as much details as possible
B
summary figures only
C
details of non-controllable expenses
D
cost and comparable data useful in decision-making
correct option: d
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3
Responsibility accounting is particularly concerned with?
A
histoical accounting
B
controllable costs
C
storekeeping
D
valuation of stock
correct option: b
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4
An advantage of the use of the voucher system is that it?
A
reduces the number of cheques that will be writen during any given period
B
provides a highly flexible system for handling unusual transactions
C
provides a comprehensive record of business done with particular suppliers
D
ensure that every expenditure is reviewed and verified before payment is made
correct option: d
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5
A business transaction is recorded in the books of account when the?
A
owner of the business invests his N10,000 in another company
B
business retains part of ofits profits for future expansion purposes
C
business invest applies for overdraft facilities from its bankers
D
owner of the business collects N5,000 from the accountant
correct option: a
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6
When a transaction causes an assets account to increase, there is?
A
a decrease of equal amount inthe owner's equity account
B
an increase in a liability account
C
an increase of equal amonut in another assets account
D
a decrease of equal amount in a liability account
correct option: b
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7
N
Bank account 59,410
Capital account 50,000
Purchase account 20,000
Rent 2,500
Stationery 90
typewriter 6,500
Sales 38,000

In preparing a trial from the list of balances given above, what is the total in debit and credit columns?
A
N147,910
B
N138,500
C
N88,500
D
N85,800
correct option: c
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8
The purchase of two generators by Hassan Electronics Enterprises should be recorded as?
A
an acquistion of fixed assets
B
an expenses in its general office expenses account
C
an acquistion of stock
D
a part of capital in the capital account
correct option: a
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9
If the inventory at the end of the current year is understated and the error is not caught during the following year, the effect is to?
A
overstate income this year and understate in next year
B
understate income this year and overstate in next year
C
understate this year's income with no effect on the next year's
D
overstate the income for the two-year period
correct option: a
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10
The total of the discounts received column in the cash book is posted to the?
A
credit of the discounts received account
B
debit of the discounts allowed account
C
credit of the discounts allowed accoun
D
debit of the discounts received account
correct option: d
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