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

Question 21:

• JAMB 1998

The ordinary shareholders enjoy the following rights except the right to?

A. Vote at annual general meetings
B. Elect the board of directors
C. Participate in additional issues of shares
D. Receive dividends at a preddetermined rate

Question 22:

• JAMB 1998

Granada Corporation has net assets of N600,000 and contributed capital of N180,000. The corporation has 30,000 shares of common stock outstanding with no preferred stock. This suggest that the corporation has?

A. A book value of N14 per share
B. A book value of N20 per share
C. A deficit of N420,000
D. Retained earnings of N600,000

Question 23:

• JAMB 1998

Under which of these conditions can a company issue shares at discount? (i)A resolution must be passed at a general meeting (ii) The amount of discount must be stated in the resolution (iii) The share must have existed for at least six years (iv) On the order of a court.

A. I, ii and iii only
B. I, ii and iv only
C. I, iii, and iv only
D. Ii, iii and iv only

Question 24:

• JAMB 1998

The part of equity which is payable on winding up is called?

A. General reserve
B. Revenue reserve
C. Capital reserve
D. Normal reserve

Question 25:

• JAMB 1998

To compute gearing ratio, divide?

A. Profit by capital employed
B. Current assets by current liability
C. Profit by total assets
D. Long-term debts by equity capital