Jamb Accounts - Principles of Accounts Questions
Question 31:
If a sole proprietorship is purchased for cash, then?
- A The purchaser debits his business purchase account with the consideration he pays
- B All assets and liabilities must be bought
- C Goodwill results where value of assets
- D The vendor debits his business purchase account with the considerstion he receives
Question 32:
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
Question 33:
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
Question 34:
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
Question 35:
Calls in advance are treated in the balance sheet as?
- A Current asset
- B Current liability
- C Fixed assets
- D Fixed liability