10 questions from the JAMB 2023 Accounting paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2023Question 1 · Accounting Fundamentals
The main purpose of transaction file is?
A.to record assets and liabilities
B.to update income and expenses
C.to make organization decision
D.to update master files
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Answer: D. to update master files
A transaction file's main purpose is to update master files.
JAMB 2023Question 2 · Accounting Fundamentals
The assumption that a business will continue to exist into the foreseeanle future is recognized by a concept called
A.matching
B.business entity
C.going concern
D.historical cost
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Answer: C. going concern
The going concern concept assumes a business continues into the foreseeable future.
JAMB 2023Question 3 · Branch and Control Accounts
Another name for control accounts is
A.total account
B.purchases ledger
C.creditors' account
D.debtors' account
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Answer: A. total account
Control accounts are also known as total accounts.
JAMB 2023Question 4 · Cash Book and Bank Reconciliation
The discount column on the left-hand side of cash book represents a discount
A.received from a debtor
B.allowed to a creditor
C.allowed to a debtor
D.received from a creditor
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Answer: C. allowed to a debtor
The discount column on the debit (left) side of the cash book represents discount allowed to a debtor.
JAMB 2023Question 5 · Company and Partnership Accounts
Goodwill can be introduced when
A.the business suffers high loss
B.the business is being expanded
C.the partnership experience super profit
D.a new member is admitted
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Answer: D. a new member is admitted
Goodwill can be introduced when a new member is admitted to a partnership.
JAMB 2023Question 6 · Company and Partnership Accounts
The document which is legal charter of a company that defines the limits of a company's field of operation is known as
A.articles of association
B.equity share certificate
C.prospectus
D.memorandum of association
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Answer: D. memorandum of association
The Memorandum of Association is the legal charter defining a company's field of operation.
JAMB 2023Question 7 · Final Accounts and Trial Balance
₦ Debtors opening 4000 Debtors closing 1500 Cash received from debtors 8500 Bad debts written off 350 Discount allowed 500 Discount received 1000 What is the amount of sales for the year?
A.₦6850
B.₦6650
C.₦3850
D.₦1550
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Answer: A. ₦6850
Sales = 1,500+8,500+350+500-4,000 = N6,850.
JAMB 2023Question 8 · Final Accounts and Trial Balance
The short term solvency of a company is determined with ------- ratio
A.acid test
B.gross profit margin
C.debt to equity
D.current
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Answer: D. current
The current ratio determines a company's short-term solvency.
JAMB 2023Question 9 · Manufacturing and Departmental Accounts
₦ Manufacturing wages 42,000 Factory rent 880 Raw materials: Stock 1/1/16 1,000 Purchases 16,000 Stock 31/12/16 1,400 Depreciation of Plants and Machinery 800 Royalties 300 Indirect wages 18,000 General indirect expenses 620 Calculate the cost of raw materials consumed
A.₦15,600
B.₦17,000
C.₦42,000
D.₦20,300
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Answer: A. ₦15,600
Raw materials consumed = 1,000+16,000-1,400 = N15,600.
JAMB 2023Question 10 · Public Sector and Not-for-Profit Accounts
One of the options below is not the source of income for non - profit organization
A.ordinary shares
B.donations
C.subscription/dues
D.entrance fees
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Answer: A. ordinary shares
Ordinary shares are not a source of income for a non-profit organization.
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