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

Question 31:

• JAMB 2015

An advantage of using accounting ratios is that

A. Can be easily calculated
B. Show errors and frauds
C. Facilitate decision making
D. Are stipulated by law

Question 32:

• JAMB 2016

The ratio that gives the indication of the efficiency of a firm's sales with respect to cost of goods sold is a

A. Return on capital employed
B. Gross profit margin
C. Net profit margin
D. Return on equity

Question 33:

• JAMB 2016

The instrument used in analysis and interpretation of financial statement is the

A. Accounting ratios
B. Income and expenditure extract
C. Balance sheet extract
D. Found accounting

Question 34:

• JAMB 2018

N	N
Capital 39,000	Land 20,000
Long Term Loan 15, 000	Building 30,000
Creditors 9,000	Stock 40,000
	Debtors 6,000
Accrued wages 5,000	Cash 8, 000
68,000	68,000

Use the information above to answer the question
: The acid test ratio in the company is___________





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

Question 35:

• JAMB 2018

Tanko Ltd had

Earnings per share 47k

Dividends per share 30k

Per value of each share N1.20

market price per share NM1.50

what will be the price earnings ratio of the company?

A. N3.91
B. N3.19
C. N2.95
D. N2.55