1999 - JAMB Accounting Past Questions and Answers - page 4
31
The market price per ordinary share of a corporation listed on the stock exchange is most closely related to its?
A
earning per share
B
redemption price per share
C
book value per share
D
call price per share
32
Which of the following events increases a corporation's shareholders equity?
A
Donation of shares out of the corporation's own stock to the corporation
B
The corporation's purchase of treasury stock
C
Shares of previously subscribed stock issue to subscribing stockholders
D
A municipality donation of land to the corporation
33
If a promoter pays a lawyer N5,000 for services rendered in preparing a Memorandum of Incorporation, the journal entry is to debit?
A
preliminary expenses, credit cash accounts
B
promoter, credit creditors' accounts
C
lawyer's credit cash accounts
D
cash , credit incorporation accounts
34
Calls in advance are treated in the balance sheet as?
A
current asset
B
current liability
C
fixed assets
D
fixed liability
35
Shares issued to a vendor in payment of business purchased would require a debit to?
A
cash account and credit to share capital account
B
share capital account and credit to vendor's account
C
vendor's account and credit to share capital account
D
share capital account and credit to cash account
36
The best method of allocating expenses among departments is to?
A
allocate expenses to each department in proportion to the sales of that department
B
charge against each department those costs which are within its control
C
charge expenses against each department in proportion to the purchases of that department
D
allocate expenses to each section of the department in relation to the number of people
37
To record the transfer of stock from one department to another, the correct entry would be to debit?
A
goods outwards and credit goods inwards
B
merchandise account and credit department stock account
C
department transfering and credit department receivving
D
department receiving and credit department transfering
38
Use the information below to Answer questions 46 and 47.
Among Limited invoiced goods at a cost of N10,000 to its Ikeja branch at a marginal of 20%. The branch later returned goods worth N1,200 at invoice price to the head office.
The profit marginal should be?
Among Limited invoiced goods at a cost of N10,000 to its Ikeja branch at a marginal of 20%. The branch later returned goods worth N1,200 at invoice price to the head office.
The profit marginal should be?
A
debit to goods sent to branch account
B
debit to branch stock adjustment account
C
credit to branch adjustment account
D
credit to branch stock adjustment account
39
What is the correct entry in the head office books at the point of initial transfer of the goods?
A
Branch stock account would be credited with
B
Branch stock account would be debited with N12,000
C
Goods sent to branch account would be debited with N10,800
D
Goods sent to branch account would be credited with N12,000
40
Capital and revenue expenditures of government are usually accounted for under funds which include?
A
A personal advances, technical, special trust and
B
technical, special trusth and commercial funds
C
personal advances, treasury clearance and special trusth funds
D
commercial loans and treasury clearance funds
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