Waec Accounts - Principles of Accounts 2003 Past Questions and Answers

Question 11:

• WAEC 2003

Use the following information to answer the given question.
\(\begin{array}{c|c} \text{Net profit for the year} & N75.000\\ \text{Ordinary share capital of 50 kobo each} & N65,000\\ \text{10% Preference shares of 50 kobo each} & N100,000\end{array}\)
The amount available as dividend to ordinary shareholders is

A. N75,000
B. N65,000
C. N55,000
D. N52,500

Question 12:

• WAEC 2003

Use the following information to answer the given question.
\(\begin{array}{c|c} \text{Net profit for the year} & N75.000\\ \text{Ordinary share capital of 50 kobo each} & N65,000\\ \text{10% Preference shares of 50 kobo each} & N100,000\end{array}\)
Preference dividend for the year is

A. N20,000
B. N10,500
C. N10,000
D. N7,500

Question 13:

• WAEC 2003

Use the following information to answer the given question.
\(\begin{array}{c|c} \text{Net profit for the year} & N75.000\\ \text{Ordinary share capital of 50 kobo each} & N65,000\\ \text{10% Preference shares of 50 kobo each} & N100,000\end{array}\)
Dividend per ordinary share is

A. N1.00
B. N0.50
C. N0.45
D. N0.40

Question 14:

• WAEC 2003

Which of the following is the basis for apportioning rent among departments?

A. Sales
B. Floor area
C. Number of employees
D. Direct labour cost

Question 15:

• WAEC 2003

Which of the following brings a company into legal existence?

A. Certificate of incorporation
B. Memorandum of association
C. Articles of association
D. Company law