1998 - JAMB Accounting Past Questions & Answers - page 3

21
Determine the year''s purchase from the following information relating to a firm.


Total creditor''s b/f N 7,200
Total cash payment to suppliers N 98,800
Total creditors c/f N 8,400
A
N7,200
B
N98,800
C
N100,000
D
N105,800
CORRECT OPTION: c
22
Derive the total sales figure from the following information extracted from a firm's cash book and other relevant records.

Total debtors b/f N 5,600
Total cash receipts from debtors
and cash sales N 153,000
Total debtors c/f N 6,800
A
N6,800
B
N153,000
C
N154,200
D
N159,800
CORRECT OPTION: c
23
The statement of affairs prepared from incomplete records can be described as?
A
the summary of all the business transactions of the trader ascertained by the accountant
B
a balance sheet at a particular date showing the assets and liabilities of the business
C
a schedule of all the business ventures entered into for the period to which the records relates
D
the statement that shows the profit or loss made during the period
CORRECT OPTION: b
24
The contribution marginal on a job is the?
A
gross profit
B
net profit
C
excess of sales revnue over variable costs
D
difference between fixed and variable costs
CORRECT OPTION: c
25
The objective of allocating all costs to producer is to?
A
produce a scientifically accurate cost
B
avoid unallocated overhead and compute total accounts
C
co-odinate the cost and financial accounts
D
compute the contribution of the product to the final profit
CORRECT OPTION: d
26
Use the information below to answer question 28 and 29.
Raw materials inventory at the beginning of a period was N 46,800 and at the close of the period there was a balance of N38,600. From the purchases made during the period, defective materials costing N9,200 were returned. Cost of materials consumed during the period was N448,500.
What was the total purchases made during the period?
A
N497,100
B
N457,700
C
N449,500
D
N440,300
CORRECT OPTION: c
27
What was the cost of materials available for use during the period?
A
N487,100
B
N449,500
C
N448,500
D
N440,300
CORRECT OPTION: d
28
The limitations of the receipts and payments account arise mainly because of the reliance on?
A
cash movement as evidence of transaction
B
the acconuting officer to report
C
the capital account of the organization
D
the transaction papers as evidence of transaction
CORRECT OPTION: a
29
The trading account is to a sole trader what income and expenditure account is to a?
A
partnership
B
public limited organization
C
manufacturing organization
D
non-profit making organization
CORRECT OPTION: d
30
A non-profit-making organization differs from a profit-making one in that?
A
it does not earn income
B
proceeds from sale of shares form part of its income
C
all its income is committed
D
annual subscriptions and levies form part of its income
CORRECT OPTION: d
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