Accounts Principles Of Accounts Jamb Past Questions and Answers

Question 31 :

• JAMB 1994

A limited liability company has an authorized share capital of N50 million split into 100 million shares 80 million share was offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued
What is the issued capital

A. N40
B. N48
C. N50
D. N80

Question 32 :

• JAMB 1994

Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: N40,000, N50,000 and N70,000.
The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for N50,000 cash. Wamo's equity in the resulting partnership is

A. N32,000
B. N40,000
C. N42,000
D. N50,000

Question 33 :

• JAMB 1994

The document setting out the regulations regarding shares, meetings and internal organization of a company is known as

A. Memorandum of association
B. Article of association
C. Prospectus
D. Company law

Question 34 :

• JAMB 1994

An advantage of using accounting ratios is that they

A. Can be easily calculated
B. Facilitate decision making
C. Are stipulated by law
D. Shows error and fraud

Question 35 :

• JAMB 1994

The expenditure on a good or services which is consumed either immediately or within a current accounting period is called

A. Fixed expenditure
B. Capital expenditure
C. Annual expenditure
D. Recurrent expenditure