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
correct option: d
Users' Answers & Comments32
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
correct option: a
Users' Answers & Comments33
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
correct option: a
Users' Answers & Comments34
Calls in advance are treated in the balance sheet as?
A
current asset
B
current liability
C
fixed assets
D
fixed liability
correct option: b
Users' Answers & Comments35
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
correct option: c
Users' Answers & Comments36
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
correct option: b
Users' Answers & Comments37
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
correct option: d
Users' Answers & Comments38
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
correct option: d
Users' Answers & Comments39
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
correct option: d
Users' Answers & Comments40
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
correct option: a
Users' Answers & Comments