Jamb Accounts - Principles of Accounts Questions
Question 41:
Under which of these conditions can a company issue shares at discount? (i)A resolution must be passed at a general meeting (ii) The amount of discount must be stated in the resolution (iii) The share must have existed for at least six years (iv) On the order of a court.
- A I, ii and iii only
- B I, ii and iv only
- C I, iii, and iv only
- D Ii, iii and iv only
Question 42:
The part of equity which is payable on winding up is called?
- A General reserve
- B Revenue reserve
- C Capital reserve
- D Normal reserve
Question 43:
To compute gearing ratio, divide?
- A Profit by capital employed
- B Current assets by current liability
- C Profit by total assets
- D Long-term debts by equity capital
Question 44:
Which of the following entries is effected by a department when goods are charged to it at selling prices?
- A Stock account is debited
- B Purchases account is debited
- C Stock account is credited
- D Mark-up account is debited
Question 45:
The difference between the closure of the books of a branch and those of a separate company is that?
- A There is retained earnings account on the branch books
- B The revenue and expenses account is closed to branch current account
- C There is no retained earnings account on the branch
- D The revenue and expenses account is not closed to the home office current account