JAMB Principles of Accounts 1995 Question 44

Question 44

Departmental Accounts

Departmental accounts are maintained to ascertain the

  1. A.profits of the entire organization
  2. B.contribution of each department
  3. C.expenses of each department
  4. D.sales of each department.
Show the answer and explanation

Answer: B (contribution of each department)

Explanation

Departmental accounts show how much each department contributes to the overall profit.