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Saturday, 15 August 2026
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Accounts - Principles of Accounts Past Questions and Answers

Topic: Accounting ratios

Jamb Accounts - Principles of Accounts Questions - Accounting ratios

Question 1:
The acid test ratio in the company is
  • A 1:1
  • B 1:2
  • C 2:3
  • D 3:2
View Answer & Explanation
Question 2:
A company has departments M and N. The expenses incurred wholly in M is N5000. General expenses incurred amount toN25000. Expenses are apportioned in the ratio 2:3 for departments M and N respectively.
What is N's share of the expense?
  • A N10 000
  • B N15 000
  • C N18 000
  • D N20 000
View Answer & Explanation
Question 3:
N N
Capital 39,000 Land 20,000
Long Term Loan 15, 000 Building 30,000
Creditors 9,000 Stock 40,000
Debtors 6,000
Accrued wages 5,000 Cash 8, 000
68,000 68,000






Use the information above to answer the question
: The acid test ratio in the company is___________



  • A 1:1
  • B 2:3
  • C 1:2
  • D 3:2
View Answer & Explanation
Question 4:
Tanko Ltd had
Earnings per share 47k
Dividends per share 30k
Per value of each share N1.20
market price per share NM1.50






what will be the price earnings ratio of the company?
  • A N3.91
  • B N3.19
  • C N2.95
  • D N2.55
View Answer & Explanation
Question 5:
The short term solvency of a company is determined with ____________ ratio
  • A Acid test
  • B Gross profit margin
  • C Debt to equity
  • D Current
View Answer & Explanation