Jamb Accounts - Principles of Accounts 1998 Past Questions and Answers

Question 41:

• JAMB 1998

Under which of these conditions can a company issue shares at discount? (i)A resolution must be passed at a general meeting (ii) The amount of discount must be stated in the resolution (iii) The share must have existed for at least six years (iv) On the order of a court.

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

Question 42:

• JAMB 1998

The part of equity which is payable on winding up is called?

A. General reserve
B. Revenue reserve
C. Capital reserve
D. Normal reserve

Question 43:

• JAMB 1998

To compute gearing ratio, divide?

A. Profit by capital employed
B. Current assets by current liability
C. Profit by total assets
D. Long-term debts by equity capital

Question 44:

• JAMB 1998

Which of the following entries is effected by a department when goods are charged to it at selling prices?

A. Stock account is debited
B. Purchases account is debited
C. Stock account is credited
D. Mark-up account is debited

Question 45:

• JAMB 1998

The difference between the closure of the books of a branch and those of a separate company is that?

A. There is retained earnings account on the branch books
B. The revenue and expenses account is closed to branch current account
C. There is no retained earnings account on the branch
D. The revenue and expenses account is not closed to the home office current account