Formation and classification of companies - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• 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 3:

• JAMB 1995

The conversion of a partners business into a limited liability company affords the

A. General partners the chance of enjoying the limited laibility protection
B. Limited liability partners the chance of enjoying the limited liability protecction
C. Creditors the chance of enjoying the limited liabiity protection
D. Debtors the chance of enjoying the limited liability protection

Question 4:

• JAMB 1998

The price paid by an acquiring company is the?

A. Premium
B. Purchase consideration
C. Sales consideration
D. Conversion fee

Question 5:

• 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