2017 - JAMB Accounting Past Questions and Answers - page 2

11
What is the main purpose of transaction file?
A
To record assets and liabilities
B
To update income and expenses
C
to update master files
D
to make organization decision
correct option: c
The main purpose of organization file is to update the master file of the organization
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12
Processed data is only useful to user if it is
A
complex
B
quantitative
C
relevant
D
qualitative
correct option: c
first thing to be considered when gathering data is the relevant and usefulness of the data or information before considering the qualitative aspect and other things
Relevant : even if the information of data is not processed, if the processed data is relevant, it will be useful to the user
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13
Changes can occur in partnership when:
i. partnership is dissolved
ii. There is amalgamation of partnership
iii.There is a change in the profit or loss sharing ratio
Iv. Intangible asset increase
A
I,II and IV
B
I & III
C
I,II and III
D
I, III and IV
correct option: c
I II and III:Changes will occur in partnership is dissolved amalgamation and changes in profit or loss sharing ratio
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14
The authority warrant issued prior to the approval of the appropriate bill at the beginning of the year
A
provisional general warrant
B
annual general warrant
C
Reserved expenditure warrant
D
contigencies
correct option: a
Provisional general warrant is issued by minister to enable money to be released for expenditure for the early of the year before the appropriation Act is passed
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15
one of the options below is not the source of income for non- profit organization
A
Entrance fees
B
subscription/dues
C
odrinary shares
D
Donations
correct option: c
Ordinary shares: This type of source of income is only used in profit oriented organization to generate fund the pubic so as to enable the organization make more profit at the end of a specified period
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16
\begin{array}{c|c} & N \\ \hline \text{Stock Jan 1} & 2600 \\ \hline \text{Purchases} & 4000 \\ \hline \text{Carriage inwards} & 500 \\ \hline \text{Sales} & 9000 \\ \hline \text{Carriage outwards} & 500 \end{array}
Determine the net profit
A
₦4,000
B
₦4,500
C
₦5,000
D
₦1,400
correct option: d
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17

Salaries in arrears is treated in the balance sheet as a

A

current asset

B

current liability

C

fixed asset

D

long term liability

correct option: b

Current Liability: salaries in arrears fall under the current liability because it is benefit due to outsiders but still enjoyed by the organisation and can't exceed a year

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18
\begin{array}{c|c} & N \\ \hline \text{Plant and Machinery} & 190 000 \\ \hline \text{Motor Vehicle} & 170 000 \\ \hline \text{Stock} & 60 000 \\ \hline \text{Current Liabilities} & 50 000 \\ \hline \text{Purchase consideration} & 400 000 \end{array} Determine the amount of goodwill
A
₦110 000
B
₦ 80 000
C
₦ 90 000
D
₦ 30 000
correct option: d
\(\begin{array}{c|c} \text{Assets} & N \ \hline \text{Plant and Machinery} & 190 000 \ \hline \text{Motor Vehicle} & 170 000 \ \hline \text{Stock} & 60 000 \ \hline & 420,000 \ \hline \text{Less Liabilities} & 50 000 \ \hline \text{Value / Net worth of the business} & 370,000\end{array}\)

Purchase Consideration less worth of the business
400,000 - N 370,000

= N30,000

Goodwill is an asset that can not be seen or touched. It is referred to as intangible asset.
Goodwill is generated as may be the good name ot the business, confident of the customers an the product of the business. It is quantifiable by the management an monetary terms.
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19
When starting with the cash book balance in preparing the bank reconciliation statement, the followings are added
A
Unpresented cheque
B
Dividend
C
Uncredited cheque
D
credit transfer
correct option: c
Uncredited cheque have to be less when starting with balance as per cashbook not add because the cheque are yet to be credited by the bank
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20
Which of these is the main source document for recording cash paid into bank?
A
invoice
B
cheque book
C
credit note
D
pay-in-slip
correct option: d
Pay-in-slip:this is in form of a slip designed with the name of the bank on top that has dates amounts in figure and word, column for the denomination of money paid in signature bank teller, stamp to prove the money is deposited into the bank
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