1998 - JAMB Accounting Past Questions & Answers - page 5

41
The part of equity which is payable on winding up is called?
A
general reserve
B
revenue reserve
C
capital reserve
D
normal reserve
CORRECT OPTION: b
42
To compute gearing ratio, divide?
A
profit by capital employed
B
current assets by current liability
C
profit by total assets
D
long-term debts by equity capital
CORRECT OPTION: d
43
Which of the following entries is effected by a department when goods are charged to it at selling prices?
A
stock account is debited
B
purchases account is debited
C
stock account is credited
D
mark-up account is debited
CORRECT OPTION: b
44
The difference between the closure of the books of a branch and those of a separate company is that?
A
there is retained earnings account on the branch books
B
the revenue and expenses account is closed to branch current account
C
there is no retained earnings account on the branch
D
the revenue and expenses account is not closed to the home office current account
CORRECT OPTION: a
45
The term fiscal compliance means?
A
al financial and related laws and regulations are adhered to
B
only the budget fir the current period is complied with and no deficits allowed
C
all physical assets requirements have been met
D
fiscal planning is necessary for proper accountabilit in the public sector
CORRECT OPTION: a
46
In a public corporation, the capital expenditure incurred in a financial period is?
A
spread over the useful life of the assets through depreciation
B
apportioned at a pre-determined rate stipulated by law
C
written off in the year in which they occur
D
merged with recurrent expenditure and reported in one required lump sum
CORRECT OPTION: c
47
Money not required to meet chargeable expenditure in any fiscal year under cash accounting, should be?
A
surrendered to the consolidated revenue fund
B
carried forward to the next financial year
C
reserved to meetany deficits or contingencies
D
returned to the taxpayer
CORRECT OPTION: a
48
If a monthly insurance premium is remitted to a company by the state government, the initial deductions from employees are recorded in?
A
the general fund
B
agency fund
C
special fund
D
general long-term fund
CORRECT OPTION: b
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