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WAEC Financial Accounting 2006 Question 48

Question 48

Departmental Accounts

Which of the following is not a purpose for preparing departmental accounts? To

  1. A.compare the results of different departments
  2. B.employ staff into different departments
  3. C.reward departmental managers
  4. D.obtain information for formulating policies.
Show the answer and explanation

Answer: B (employ staff into different departments)

Explanation

Departmental accounts measure results; they are not for employing staff.