Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 551:

• JAMB 2006

Gross earnings........................N950 000
Current liabilities...................N100 000
Operating expenses....................N350 000
10% debentures........................N400 000
Shareholder's fund....................N1300 000
Corporate tax is 30%
From the data above calculate the returns on equity?

A. 33%
B. 35%
C. 20%
D. 30%

Question 552:

• 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
The undistributed profit carried forward is?

A. N 68 000
B. N 20 000
C. N 74 000
D. N 34 000

Question 553:

• JAMB 2006

Accrual accounting differs from cash accounting because it recognizes?

A. Cash and creditors
B. Debtors and creditors
C. Cash and debitors
D. Prepayment and cash

Question 554:

• 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 555:

• 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