Introduction to Company Accounts - 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

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 nominal value of each share?

A. N2
B. N0.80
C. N0.60
D. N0.50

Question 3:

• 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 4:

• 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 5:

• 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