# 2020JAMB Accounting Past Questions & Answers - page 1

1
The formula for calculating depreciation using straight line method is
A
$$\frac{\text{Scrape Value} + \text{Sales}}{Useful life}$$
B
$$\frac{\text{Cost } - \text{Scrape Value}}{Useful life}$$
C
$$\frac{\text{Sales } - \text{Scrape Value}}{Useful life}$$
D
$$\frac{\text{Purchases } + \text{Sales }}{Useful life}$$
CORRECT OPTION: b
2
Petty cash book records transactions on
A
the debit side only
B
the credit side only
C
both credit and debit sides
D
reversed entry
CORRECT OPTION: c
3
When a bill is negotiated to a bank, it is said be?
A
surrendered
B
cashed
C
discounted
D
accepted
CORRECT OPTION: c
4
The main difference between the ordinary and preference shareholders is that?
A
the former receive dividends while the latter do not
B
the latter are not members of the company while the former are
C
in the case of winding up, the former are paid first before the latter
D
the former have voting rights while the latter do not
CORRECT OPTION: d
5
Given an incomplete record without sufficient information to determine profit, the necessary thing to do is to?
A
draw up the statement of affairs
B
draw up a T-account to establish the amount
C
compare the journal entries with the cash book
D
cross-check the cash book for further information
CORRECT OPTION: a
6
keeping records under the single entry system has the advantage of?
A
quality in terms of records
B
completeness in terms of records
C
accuracy in terms of operation
D
simplicity in terms of operation
CORRECT OPTION: d
7
Which of the following branches of accounting was first developed?
A
Cost accounting
B
Financial acounting
C
Management accounting
D
Petroleum accounting
CORRECT OPTION: b
8
The process of bookkeeping includes records produced from?
A
ledgers
B
source documents
C
minutes of meeting
D
imtuitive reasoning
CORRECT OPTION: c
9
The purchase ledger control account of a company had an opening balance of N45,600 credit and closing balance of N72,600 credit. The company made payments of 437,000 to credit suppliers during the period: and had discount received of N18,600 on this account. What were the credit purchase for the period?
A
N509,600
B
N482,600
C
N428,600
D
N418,400
CORRECT OPTION: b
10
Which of the following accounting records are source documents?
A
Journal and ledgers
B
Sales invoice and cash book
C
Cash book and debit note
D
sales invoice and debit note
CORRECT OPTION: d
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