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

Question 26:

• JAMB 2014

Hussaina Enterprises sent goods worth #800,000 at cost plus mark-up of 20% to its branch
Determine the profit on the goods sent to the branch at profit margin of 25% mark-up

A. #150,000
B. #160,000
C. #170,000
D. #180,000

Question 27:

• JAMB 2015

Use the information below to answer this question.
\(\begin{array}{c|c}
\text{Stock} & 11,250 \\
\hline
\text{Debtors} & 18,750 \\
\hline
\text{Creditors} & 3,750 \\
\hline
\text{Bank} & 4,000 \\
\hline
\text{Net profit} & 7,500 \\
\hline
\text{Net} & 60,000 \\
\end{array}\)
Calculate the acid test ratio

A. 5 : 1
B. 6 : 1
C. 6 : 1 : 1
D. 4 : 1

Question 28:

• JAMB 2015

Use the information below to answer this question.
\(\begin{array}{c|c}
\text{Stock} & 11,250 \\
\hline
\text{Debtors} & 18,750 \\
\hline
\text{Creditors} & 3,750 \\
\hline
\text{Bank} & 4,000 \\
\hline
\text{Net profit} & 7,500 \\
\hline
\text{Net} & 60,000 \\
\end{array}\)
Determine the debtors collection period

A. 114 days
B. 68 days
C. 37 days
D. 41 days

Question 29:

• 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 30:

• 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