Financing Business - Jamb Commerce Past Questions and Answers

Question 16:

• 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 17:

• JAMB 1995

The financial index which compares current assets directly with current liabilities is known as current

A. Turnover
B. Capital
C. Ratio
D. Balance

Question 18:

• JAMB 1995

Profit that is expressed as a percentage of the cost of goods sold is referred to as

A. Margin
B. Mark-up
C. Gain percent
D. Gross profit

Question 19:

• JAMB 1995

Given:
Opening stock 40 000
Purchases 115 000
Closing stock 60 000
Sales 250 000
What is the cost of goods sold?

A. N 155 000
B. N 95 000
C. N 50 000
D. N 30 000

Question 20:

• JAMB 1995

RRF as a scheme introduced by the central bank of Nigeria means

A. Recording and Rediscounting Facility
B. Refinancing and Recording Facility
C. Refinancing and Rediscounting Facility
D. Refinancing and Reinvesting Facility