JAMB past questions and answers on Accounts 2018

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1

What is the amount of capital employed?

A ₦7000

B ₦10000

C ₦22000

D ₦15000

SOLUTION:

Hint: The amount of Capital Employed basically means the difference between the total assets and current liabilities of the company.

2

Advertising expenses incurred on a product in a business organization should be charged to

A Sales department

B Production department

C Purchase department

D Administration department

SOLUTION:

Because it is an expenses incurred in order to enhance the sales of the company’s product or services.

3

Use the information above to answer the question

What is the acid test ratio in the company?

A 1:1

B 2:3

C 1:2

D 3:2

SOLUTION:

Acid test ratio: This is a measure of the liquidity position of a company after deduction stock from current assets

Here is the formula: current assets less inventory/current liabilities.

Hence, 18000 – 4000/14000 = 1 : 1

4

When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________

A Price above or below the stipulated price

B Any price but not below the transfer price

C Cost price

D A price that is equal to the mark up

SOLUTION:

In cost plus mark up pricing strategy, the selling price is determined by adding a specific amount of mark up to a product unit cost.

5

The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________

A Accountant general

B Finance minister

C Auditor general

D Permanent secretory.

The amount of money that government reserves for a particular purpose can also be referred as appropriation. On the other hand, public expenditure refers to the spending made by government of a country on collective needs.