Accounts - Principles of Accounts Past Questions and Answers

On the dissolution of a partnership business,the net book value of the assets is transferred to?

A Debit of realization account
B Credit of realization account
C Credit of bank account
D Debit of bank account

Question 322:

Bala Ltd acquired the business of Bello Ltd and caused the separate existence of the latter company to terminate. This situation is best described as?

A Absorption
B Merger
C Conversion
D Dissolution

Question 323:

Where a company acquires controlling shares of another and the consideration is paid in cash, the entries in the books of the purchases are debit?`

A Investment and credit cash
B Investment and credit shares
C Purchases and credit cash
D Purchases and credit shares

Question 324:

The main difference between the ordinary and preference shareholders is that?

A The former receive dividends while the latter do not
B The latter are not members of the company while the former are
C In the case of winding up, the former are paid first before the latter
D The former have voting rights while the latter do not

Question 325:

The law that currently regulates the registration of companies in Nigeria is the?

A Constitution of the Federal Republic of Nigeria, 1999
B Nigeria Enterprises Promotion Decree, 1972
C Companies and Allied Matters Decree, 1990
D Companies Decree, 1968