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

Question 26:

• 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 27:

• 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 28:

• 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

Question 29:

• JAMB 1999

Shares issued to a vendor in payment of business purchased would require a debit to?

A. Cash account and credit to share capital account
B. Share capital account and credit to vendor's account
C. Vendor's account and credit to share capital account
D. Share capital account and credit to cash account

Question 30:

• JAMB 1999

Use the information below to answer the question
The quick ratio is

A. 0. 82: 1
B. 0. 91:1
C. 0.95:1
D. 1:53:1