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

Question 21:

• JAMB 2009

The book value per share is obtained by dividing?

A. Shareholders equity by outstanding shares
B. Total assets by outstanding shares
C. Gross profit by outstanding shares
D. Net profit by outstanding shares

Question 22:

• JAMB 2009

If the gross profit margin is 10% of sales, what is the value of the cost of goods sold?

A. N10,000
B. N90,000
C. N105,600
D. N110,000

Question 23:

• JAMB 2011

Use the information below to answer questions 23 and 24.
Incomplete Record (Extract)
Sales......................................N10,600
Rent...........................N200
Depreciation of vehicle (cost N5000) 10%
Gross profit margin is 20%
What is the cost of goods sold?

A. N4 800
B. N8 480
C. N2 320
D. N 9 900

Question 24:

• JAMB 2012

Purchasers - #44,880
Sales - #85,850
Trade creditors - #12,250
Trade debtors - #24,000
Accrued expenses - # 350
Prepaid expenses - # 700
Stock 1/1/2006 - #25,120
Stock 31/12/2006 - #27,840
Calculate the acid test ratio

A. 1:94:1
B. 1:96:1
C. 1:1:94
D. 1:1:96

Question 25:

• JAMB 2012

Purchasers - #44,880
Sales - #85,850
Trade creditors - #12,250
Trade debtors - #24,000
Accrued expenses - # 350
Prepaid expenses - # 700
Stock 1/1/2006 - #25,120
Stock 31/12/2006 - #27,840
Determine the number of times stock was turned over during the period to the nearest figure

A. 1
B. 2
C. 3
D. 4