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

Question 116:

• 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 117:

• 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 118:

• JAMB 2015

One of the items listed below will not be found in a company’s memorandum and article of association. Which is it?

A. Objects and their alteration
B. Location of business
C. Bank signatories
D. Powers of directors

Question 119:

• JAMB 2015

When shares are sold at more than the par value, they are said to have been issued at

A. A premium
B. Normal value
C. A discount
D. A profit

Question 120:

• JAMB 2015

An advantage of using accounting ratios is that

A. Can be easily calculated
B. Show errors and frauds
C. Facilitate decision making
D. Are stipulated by law