Jamb Accounts - Principles of Accounts 1998 Past Questions and Answers

Question 31:

• JAMB 1998

A non-profit-making organization differs from a profit-making one in that?

A. It does not earn income
B. Proceeds from sale of shares form part of its income
C. All its income is committed
D. Annual subscriptions and levies form part of its income

Question 32:

• JAMB 1998

Which of the following indicate that a partnership business is in place?
(i) There is a business
(ii)It is run commonly by partners
(iii)It has profit-making in view
(iv) Partners' liability is limited

A. I and ii only
B. I, ii and iii only
C. I, iii and iv only
D. Ii, iii and iv only

Question 33:

• JAMB 1998

When forming a partnership, new partners should record non-monetary assets on the new partnership's books at?

A. Their current fair market values
B. Their historical costs when first use
C. Their historical costs when first purchase by each new partner
D. The highest values practical so that future income tax deductions are maximized

Question 34:

• JAMB 1998

Umar and Ahemed share profit and losses equally and have capital balances of N40,000 and N60,000 respectively. If bdullahi purchases one-third interest with no bonus, how much will he have to contribute to the partnership?

A. N33,333
B. N40,000
C. N44,444
D. N50,000

Question 35:

• JAMB 1998

Which of the following is an intangible asset and a measure of a firm's superior earning power?

A. Patent
B. Goodwill
C. Trademark
D. Right issue