JAMB Past Questions and Answers - Page 1204

6,016.

Purchasers - #44,880
Sales - #85,850
Trade creditors - #12,250
Trade debtors - #24,000
Accrued expenses - # 350
Prepaid expenses - # 700
Stock 1/1/2006 - #25,120
Stock 31/12/2006 - #27,840

Determine the number of times stock was turned over during the period to the nearest figure.

A.

1

B.

2

C.

3

D.

4

Correct answer is B

Turnover ratio is the cost of goods sold divided by the average stock for the same period

Cost of goods sold = opening stock + purchases - closing stock
25,120 + 44,880 - 27,840 = 42,160

Average stock = opening stock + closing stock / 2
25,120 + 27,840 = 52960 / 2 = 26,480

Turn over = 42,160 / 26,480 = 1.59 times Approximately 2 times

 

6,017.

Purchasers - #44,880
Sales - #85,850
Trade creditors - #12,250
Trade debtors - #24,000
Accrued expenses - # 350
Prepaid expenses - # 700
Stock 1/1/2006 - #25,120
Stock 31/12/2006 - #27,840

Calculate the acid test ratio.

 

A.

1:94:1

B.

1:96:1

C.

1:1:94

D.

1:1:96

Correct answer is B

Acid test ratio = cash + cash equivalents + marketable securities + current accounts receivables / Total current liabilities

6,018.

Investment at cost of a company is to be disclosed under

A.

Trading accounts

B.

Profit and loss account

C.

Balance sheet

D.

Source and application of fund

Correct answer is C

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity. The balance sheet is one of the three (income statement and statement of cash flows being the other two) core financial statements used to evaluate a business.


 

6,019.

When shares are oversubscribed and money returned to unsuccessful applicants, the entry to record such money is to debit

A.

Application and allotment account and credit unsubscribed shares

B.

Application and allotment account and credit cash

C.

Oversubscribed shares and credit allotment account

D.

Oversubscribed shares and credit allotment account

Correct answer is B

You will debit application and allotment account and credit cash because monies that have been collected from the public wil have to be returned 

6,020.

Given:
1. The Memorandum of Association of the Company
11.The Article of Association of the Company
111. The Incorporation documents

From the above, which of the following is delivered to the Registrar of companies for incorporation.

A.

1 and 11

B.

1, 11 and 111

C.

1 and 111

D.

11 and 111

Correct answer is B

Documents presented to the  Registrar of companies for incorporation

  • Certificate of Incorporation;
  • Form CAC 2 (Statement of Share Capital & Return on Allotment of Shares);
  • Form CAC 7 (Particulars of Persons who are First Directors);
  • Form CAC 3 (Notice of Situation/Change of Registered Address);

From the above explanation, its safe to the Memorandum of Association of the Company, Article of Association of the Company and the Incorporation documents are all required for incorporation