Jamb Accounts - Principles of Accounts Questions
Question 21:
Which of the following is not a proper form of the accounting equation
- A Fixed assets + current assets - liabilities = capital
- B Fixed assests + current assests + liabilities = capital
- C Fixed assets – liabilities + current assets = capital
- D Fixed asset + current asset – capital = liabilities
Question 22:
The accounting convention that state that, stock should be value that the lower of cost and net realized value is --------------- convention
- A Marching
- B Consistency
- C Realization
- D Prudency
Question 23:
What does liquidity ratio measure?
- A Measures operating efficiency of a company
- B Measures the ability of a company to meet its current obligations.
- C Measures the value of investments of a company
- D Measures the financial leverage of a company
Question 24:
Derive the stock turnover period.(Average stock = 23,000. Cost of sales = 300,000 year = 365 days).
- A 28 days
- B 42 days
- C 27 days
- D 23 days
Question 25:
The following accounting entries are made when bad debt is recovered
- A Debit bad debts accounts and credit bad debt recovered account
- B Debit debtors accounts and recovered account
- C Debit bad debts recovered account and credit bad debts account
- D Debit bad debts account and credit profit and loss account