Introduction to Company Accounts - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 1995

The conversion of a partners business into a limited liability company affords the

A. General partners the chance of enjoying the limited laibility protection
B. Limited liability partners the chance of enjoying the limited liability protecction
C. Creditors the chance of enjoying the limited liabiity protection
D. Debtors the chance of enjoying the limited liability protection

Question 7:

• JAMB 1995

Which of the following ratios gives an idea of the liquidity of a firm?

A. Turnover ratio
B. Quick ratio
C. Debit ratio
D. Dividend yield

Question 8:

• JAMB 1995

A total of 400,000 shares of N1 each are to be issued by Sariki company Ltd at a price of N1.20 per share. Application were received for 600,000 shares out of which 100,000 were dishonored. If the available share were distributed pro-rata, what refund will be due a subscriber who applied for 5,000 shares?

A. N1,000
B. N1,200
C. N4,800
D. N6,000

Question 9:

• JAMB 1995

The measure of a company's ability to pays its debts quickly is called

A. Current ratio
B. Turnover ratio
C. Acid test ratio
D. Return of investment

Question 10:

• JAMB 1995

Equity shareholders' fund is

A. N133 000
B. N 120 000
C. N113 000
D. N 100 000