Accounts - Principles of Accounts Past Questions and Answers

A total of 400,000 shares of N1 each are to be issued by Sariki company Ltd at a price of N1.20 per share. Application were received for 600,000 shares out of which 100,000 were dishonored. If the available share were distributed pro-rata, what refund will be due a subscriber who applied for 5,000 shares?

A N1,000
B N1,200
C N4,800
D N6,000

Question 37:

The measure of a company's ability to pays its debts quickly is called

A Current ratio
B Turnover ratio
C Acid test ratio
D Return of investment

Question 38:

Departmental accounts re maintained to ascertain the

A Profits of the entire organization
B Contribution of each department
C Expenses of each department
D Sales of each department

Question 39:

The Asa branch of Emene company Ltd, made a sales of N549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were N34,400 and there were no discrepancies, what should be the profit of the branch for the period?

A N6,500
B N64,600
C N85,380
D N514,600

Question 40:

Which of the following statement is correct about the head office current account and the branch current account?

A Both always have debit balances
B Both always have credit balances
C The head office current account has a credit balance while the branch current account has a debit balance
D The head office current account has a debit balance while the branch current account has a credit balance