Interpretation of accounts using ratios - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 11:

• JAMB 2005

The capital employed is

A. N13 000
B. N9 900
C. N8 400
D. N9 000

Question 12:

• JAMB 2005

The current ratio is

A. 1:1
B. 2:1
C. 2.8:1
D. 3.5:1

Question 13:

• JAMB 2006

Use the information below to answer question .
Capital.....................N?
Profit and loss.............N3500
Current assets..............N?
Current liabilities.........N2000
fixed assets................N11000
The company maintains a current ratio of 3:1.
The capital balance is?

A. N95 00
B. N12 500
C. 11 500
D. 10 00

Question 14:

• JAMB 2006

Use the information below to answer question .
Capital.....................N?
Profit and loss.............N3500
Current assets..............N?
Current liabilities.........N2000
fixed assets................N11000
Determine the current assets?

A. N7 000
B. N6 000
C. N8 000
D. N9 000

Question 15:

• JAMB 2007

An accounting ratio that considers only quick assets to determine the short-term safety margin of a firm is the?

A. Fixed assets ratio
B. Capital gearing ratio
C. Current assets ratio
D. Acid test ratio