Issue of shares and debentures - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 1997

Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?

A. N125 000
B. N500 000
C. N50 000
D. N25 000

Question 7:

• JAMB 1997

A company has 5% debentures worth N500 000 ordinary share capital N 2 000 000, and preference shares N1500 000. if the company made a profit of N 1 000 000, the debenture interest would amount to

A. N 1 000 000
B. N 500 000
C. N 50 000
D. N 25 000

Question 8:

• JAMB 1997

A dividend of 10% in a company on 500 000 ordinary shares of N 1 nominal value has been declared, How much will a shareholder receive if he has 200 shares?

A. N 500 000
B. N 50 000
C. N200
D. N 20

Question 9:

• JAMB 1999

The market price per ordinary share of a corporation listed on the stock exchange is most closely related to its?

A. Earning per share
B. Redemption price per share
C. Book value per share
D. Call price per share

Question 10:

• JAMB 1999

Which of the following events increases a corporation's shareholders equity?

A. Donation of shares out of the corporation's own stock to the corporation
B. The corporation's purchase of treasury stock
C. Shares of previously subscribed stock issue to subscribing stockholders
D. A municipality donation of land to the corporation