Distinction between capital and revenue reserves - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• 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 3:

• JAMB 2001

If a property developing company sells a completed building to an interested third party, this sale can be treated in the books of the company as?

A. Capital receipt
B. Revenue receipt
C. Windfall receipt
D. Miscellaneous receipt

Question 4:

• JAMB 2013

Which of the following is the capital reserve of a company

A. Share premium
B. Retained profit
C. Accumulated depreciation
D. Loss on forfeited shares

Question 5:

• JAMB 2015

Capital reserves includes the following except

A. Revaluation surplus
B. Pre-incoporation profit
C. Share premium
D. General reserves