Financing Business - Jamb Commerce Past Questions and Answers

Question 86:

• JAMB 2015

\(\begin{array}{c|c}
N & N \\
\hline
\text{Capital 8000} & \text{Plant and machinery5000} \\
\hline
\text{Net profit 4000} & \text{Motor van 4500} \\
\hline
\text{Drawings 200} & \text{Stock 2000} \\
\hline
\text{Creditors 2000} & \text{Debtor 1000} \\
\hline
\text{Accruals 300} & \text{Bank 100} \\
\hline
& \text{Cash 600} \\
\hline
14100 & 14100 \\
\end{array}\)
What is the acid ratio?

A. 1.13 : 1
B. 2 : 1
C. 4.75 : 1
D. 4.25 : 1

Question 87:

• JAMB 2015

\(\begin{array}{c|c}
N & N \\
\hline
\text{Capital 8000} & \text{Plant and machinery5000} \\
\hline
\text{Net profit 4000} & \text{Motor van 4500} \\
\hline
\text{Drawings 200} & \text{Stock 2000} \\
\hline
\text{Creditors 2000} & \text{Debtor 1000} \\
\hline
\text{Accruals 300} & \text{Bank 100} \\
\hline
& \text{Cash 600} \\
\hline
14100 & 14100 \\
\end{array}\)
What is the acid ratio?

A. 1.13 : 1
B. 2 : 1
C. 4.75 : 1
D. 4.25 : 1

Question 88:

• JAMB 2015

Company has an authorized capital of 100millon shares at N1 per share, out of which 50 million shares have been issued and fully paid-up, the remaining 50 million shares have?

A. Not yet been issued
B. Been applied for but not issued
C. Not been paid-up
D. Been issued but have not been paid-up

Question 89:

• JAMB 2015

The circulating capital of a business enterprise is classified into

A. Cash, work-in-progress and debtors
B. Cash, Vehicles, land and building
C. Debtors, stocks of raw materials and fitting
D. Prepayments, debtors and equipment

Question 90:

• JAMB 2015

Use the information below to answer this question.
Mammy Plc, whose nominal capital is made up of 5,000,000 ordinary shares at 50K each, decide to offer 80% of it to the public and realized only 50% of the amount due.
what is the company authorized share authorized share capital?

A. N4,000,000
B. N5,000,000
C. N7,500,000
D. N2,500,000