Jamb Accounts - Principles of Accounts 1999 Past Questions and Answers

Question 31:

• JAMB 1999

If a sole proprietorship is purchased for cash, then?

A. The purchaser debits his business purchase account with the consideration he pays
B. All assets and liabilities must be bought
C. Goodwill results where value of assets
D. The vendor debits his business purchase account with the considerstion he receives

Question 32:

• JAMB 1999

The market price per ordinary share of a corporation listed on the stock exchange is most closely related to its?

A. Earning per share
B. Redemption price per share
C. Book value per share
D. Call price per share

Question 33:

• JAMB 1999

Which of the following events increases a corporation's shareholders equity?

A. Donation of shares out of the corporation's own stock to the corporation
B. The corporation's purchase of treasury stock
C. Shares of previously subscribed stock issue to subscribing stockholders
D. A municipality donation of land to the corporation

Question 34:

• JAMB 1999

If a promoter pays a lawyer N5,000 for services rendered in preparing a Memorandum of Incorporation, the journal entry is to debit?

A. Preliminary expenses, credit cash accounts
B. Promoter, credit creditors' accounts
C. Lawyer's credit cash accounts
D. Cash , credit incorporation accounts

Question 35:

• JAMB 1999

Calls in advance are treated in the balance sheet as?

A. Current asset
B. Current liability
C. Fixed assets
D. Fixed liability