Calculation of forms of capital - Jamb Commerce Past Questions and Answers

Question 1:

• JAMB 1994

Commerce is defined as the study of how

A. Man utilizes the resources in his physical environment
B. Man produces, distributes and consumes his goods and services
C. Man buys, sells and distributes goods and services
D. Raw materials are changed into finished goods

Question 2:

• JAMB 1994

What are fixtures and fittings in a balance sheet?

A. Liquid capital
B. Current assets
C. Fixed assets
D. Working capital

Question 3:

• JAMB 1995

When a company uses more of loans than equity to finance its business, the company is said to be

A. Bankrupt
B. Solvent
C. Highly geared
D. In a strong liquid position

Question 4:

• JAMB 2007

A share premium is an example of?

A. Issued capital
B. Capital stock
C. Equity capital
D. Capital reserve

Question 5:

• JAMB 2008

Use the information below to answer question 14 and 15.
Miamani Plc, whose nominal capital is made up of 5000 000 ordinary shares of 50k each, decided to offer 80% of it to the public and realized only 50% of the amount due.
What is the company's reserve share capital?

A. N2500 000
B. N4000 000
C. N5000 000
D. N2000 000