2019 - JAMB Accounting Past Questions and Answers - page 7
Which of the following is not charged to manufacturing account?
Direct expenses
Factory wages
Distribution expenses
Raw materials
Distribution costs (also known as “Distribution Expenses”) are defined as the costs incurred to deliver the product from the production unit to the end-user. It is a broad terminology and it includes several costs such as the cost of warehousing, transport, material handling,
Which of the following cannot depreciate?
plant and machinery
motor van
premises
land
Land cannot depreciate because it does not wear and tear over time.
A machine cost ₦12,500 it will be kept for 4 years and then sold at a scrap value of ₦5,120. Using the diminishing balance method, what is the amount of depreciation for second year?
An officer that is charged with the responsibility of carrying out investigations on the book of accounts to show the true and fair view is
Ministry of Finance
Accountant General
Revenue office
Auditor General
One of the key roles of an Auditor-General is to ensure that all money collected is properly accounted for and that the records comply with the rules and regulations of the federation
The instrument isued by the Minister who authorized an officer to incure expenditure is a/an
warrant
budget
imprest
consolidated fund
A warrant is a legal authority through which money is expended in government.
One of the objectives of maintaining the account of a branch at the head office is to
to access the performance of the branches
check the excesses of customers
record charges in shareholdings
record charges in liabilities
A company goods sent to branch at invoiced price is ₦30,870 at cost plus 25%. The mark-up is
₦20,000
₦6,000
₦6,174
₦10,000
We have to convert the mark-up to margin
\(\frac{25}{100}={1}{4}={1}{1+4}={1}{5}\)
profit = \(\frac{1}{5}\) x 30,870 = 6,174
The objective of departmentalization is to
ensure that departmental managers are adequately monitored
record transactions for each department for better documentation
tackle any recording problem as a result of expansion
evaluate the profit of different departments
Departmental accounts will help an organization determine which departments are most profitable. This can help in the decision-making process of the company.
Discount received is apportioned to each department on the basis of
Floor area
Turnover
Purchases
Horse power
Given:
Fixed assets Liabilities Current assets |
₦ 55,000 20,000 13,000 |
What is the capital?
₦88,000
₦48,000
₦62,000
₦55,000
Capital = Total Assets - Total liabilities
= 55,000 + 13,000 - 20,000
= 68,000 - 20,000
= ₦48,000