10 questions from the JAMB 2016 Accounting paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2016Question 1 · Accounting Fundamentals
One of the objectives of accounting is that it can be used for
A.business decision making
B.due process in business
C.motivating employees
D.determining the work force
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Answer: A. business decision making
Business decision making is a key objective of accounting.
JAMB 2016Question 2 · Accounting Fundamentals
The difference between book keeping and accounting is that while
A.book keeping interprets data, accounting records it
B.book keeping is regarded as the language of the business accounting ascertians its strength and weakness
C.book keeping records data accounting interprets it
D.book keeping summaries information accounting communicatesit
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Answer: C. book keeping records data accounting interprets it
Bookkeeping records data while accounting interprets it.
JAMB 2016Question 3 · Cash Book and Bank Reconciliation
Balance as per cashbook 2, 970 Bank Charges 220 Unpresented cheques 3, 950 Uncredited cheques 4, 178 Direct debit by bank 1, 0000 Determine the balance as per bank statement.
JAMB 2016Question 4 · Company and Partnership Accounts
Which of the following is the capital reserve of a company?
A.Accumulated depreciation
B.Retained profit
C.Share premium
D.Loss on forfeited shares
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Answer: C. Share premium
Share premium is a capital reserve of a company.
JAMB 2016Question 5 · Final Accounts and Trial Balance
The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm's capital?
A.#184, 000
B.#196,500
C.#212,000
D.#168,500
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Answer: D. #168,500
Capital = Assets(190,500) - Liabilities(22,000) = N168,500.
JAMB 2016Question 6 · Final Accounts and Trial Balance
Given: # Drawings 3,500 Net loss 2,500 Capital 1.1,2007 35,000 Additional capital 10,000 The adjusted capital as at 31 : 12 : 2007 is
A.#45,000
B.#39, 000
C.#35,000
D.#46,000
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Answer: B. #39, 000
Adjusted capital = 35,000+10,000-2,500-3,500 = N39,000.
JAMB 2016Question 7 · Final Accounts and Trial Balance
Clifford pays rent of #200 per month for premises, He paid #2,800 within the year. Compute the prepayment.
A.#300
B.#400
C.#600
D.#200
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Answer: B. #400
Prepayment = 2,800 - (200 x 12) = N400.
JAMB 2016Question 8 · Ledger, Journal, and Source Documents
The major advantage of the journal proper is that it
A.helps in the preparation of the balance sheet
B.prevents fraud and theft of item of the business
C.serves as a book of instruction to the bookkeeper
D.help the banking industry to be efficient
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Answer: C. serves as a book of instruction to the bookkeeper
The journal proper's major advantage is serving as a book of instruction to the bookkeeper.
JAMB 2016Question 9 · Manufacturing and Departmental Accounts
Departments K Y Opening 2,500 800 Purchases 120,000 100,000 Sales 180,000 200,000 Salary 8,000 30,000 Closing stock 3,000 1,500 Rate expenses of 1,500 are apportioned in the ratio 1:2 The gross profit for K is
A.# 60,700
B.#23,500
C.#60,500
D.#82,500
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Answer: C. #60,500
Gross profit for K = 180,000 - (2,500+120,000-3,000) = N60,500.
JAMB 2016Question 10 · Public Sector and Not-for-Profit Accounts
The income and expenditure account differs from receipts and payments account because it
A.accounts for notional charges
B.records transactions that relate to the period on cash basis
C.records transactions that relate to the period on accrual basis
D.accounts for balance of cash at bank
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Answer: C. records transactions that relate to the period on accrual basis
The income and expenditure account records transactions on an accrual basis.
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