1994 - JAMB Accounting Past Questions & Answers - page 4

31
An advantage of using accounting ratios is that they
A
can be easily calculated
B
facilitate decision making
C
are stipulated by law
D
shows error and fraud
CORRECT OPTION: b
32
The expenditure on a good or services which is consumed either immediately or within a current accounting period is called
A
fixed expenditure
B
capital expenditure
C
annual expenditure
D
recurrent expenditure
CORRECT OPTION: d
33
The receipt from a special tax levy to pay maturing interest obligation are recorded in
A
capital fund project
B
Debt Service Fund
C
Tax Assessment Fund
D
Special Revenue Fund
CORRECT OPTION: c
34
The cash bass of accounting requires the recognition of revenue only when they are
A
due
B
earned
C
paid
D
received
CORRECT OPTION: d
35
The amount of individual items on a government budget is called
A
vote
B
deposit
C
loan
D
grant
CORRECT OPTION: a
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