Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 216:

• JAMB 1999

When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner's?

A. Goodwill account balance
B. Current account credit balance
C. Current account debit balance
D. Profit and loss credit balance

Question 217:

• JAMB 1999

Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?

A. They will simply continue since there are no new members
B. The partnership is formally ended and new company books opened
C. The shares and all other items will be shared equally and not in their former ratios
D. Computation of goodwill must be done as it is legally required

Question 218:

• JAMB 1999

If a sole proprietorship is purchased for cash, then?

A. The purchaser debits his business purchase account with the consideration he pays
B. All assets and liabilities must be bought
C. Goodwill results where value of assets
D. The vendor debits his business purchase account with the considerstion he receives

Question 219:

• 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 220:

• 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