Jamb Accounts - Principles of Accounts 2015 Past Questions and Answers

Question 21:

• JAMB 2015

Which of the following is not a proper form of the accounting equation

A. Fixed assets + current assets - liabilities = capital
B. Fixed assests + current assests + liabilities = capital
C. Fixed assets – liabilities + current assets = capital
D. Fixed asset + current asset – capital = liabilities

Question 22:

• JAMB 2015

The accounting convention that state that, stock should be value that the lower of cost and net realized value is --------------- convention

A. Marching
B. Consistency
C. Realization
D. Prudency

Question 23:

• JAMB 2015

What does liquidity ratio measure?

A. Measures operating efficiency of a company
B. Measures the ability of a company to meet its current obligations.
C. Measures the value of investments of a company
D. Measures the financial leverage of a company

Question 24:

• JAMB 2015

Derive the stock turnover period.(Average stock = 23,000. Cost of sales = 300,000 year = 365 days).

A. 28 days
B. 42 days
C. 27 days
D. 23 days

Question 25:

• JAMB 2015

The following accounting entries are made when bad debt is recovered

A. Debit bad debts accounts and credit bad debt recovered account
B. Debit debtors accounts and recovered account
C. Debit bad debts recovered account and credit bad debts account
D. Debit bad debts account and credit profit and loss account