Jamb Accounts - Principles of Accounts 2006 Past Questions and Answers

Question 16:

• JAMB 2006

Use the information below to answer questions Turnover...........................N120 000 Net profit before tax..............N40 000 Net profit b/f.....................N68 000 Proposed dividends: Ordinary shares....................N8 000 Preference shares..................N6 000 Corporate tax is 30%...............N10 000
What is the tax charged to profit and loss account?

A. N 14 000
B. N 60 000
C. N 34 000
D. N 20 000

Question 17:

• JAMB 2006

A private company is different from a public company because?

A. It does not restrict the right to transferits shares
B. It cannot invite members of the public to subscribe for its shares
C. Its shares are owned by one person
D. It can only offer its shares to members of the publicfor subscription

Question 18:

• JAMB 2006

The use of a three-column cash book is determine by?

A. Cash discounts
B. Trade discounts
C. Cash transactions
D. Bank transactions

Question 19:

• JAMB 2006

A major factor that enhanced the early development of accounting is the?

A. Industrial Revolution
B. Growing of trade and commerce
C. Development of arithmetic
D. Invention of writing

Question 20:

• JAMB 2006

which of the following is source of document for the preparation of debtors' ledger account?

A. Debit note
B. General journal
C. Purchases invoice
D. Sales invoice