JAMB 2004 : Accounts-Principles of Accounts

1The accounting principle that is applied to check arbitrary actions on the part of accountants is

  • A. consistency
  • B. materiality
  • C. objectivity
  • D. realization
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2The loss of equipment in a fire disaster results in

  • A. a decrease in current assets
  • B. an increase in liabiities and assets
  • C. a decrease in assets and capital
  • D. an increase in liabilities and a decrease in assets
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3A source document is used for verifying the

  • A. amount due to creditors
  • B. actual cost of an asset
  • C. selling price of goods
  • D. amount due from debtors
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4The rule of accounting equation requires that account payable should be placed under

  • A. liabilities
  • B. equities
  • C. assets
  • D. capital
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5A debit in the suspense accounting will appear in the balance sheet as

  • A. a current asset
  • B. a current lability
  • C. capital
  • D. drawings
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