JAMB Commerce Past Questions & Answers - Page 122

606.

A major benefit a debtor can derive from using a credit facility is?

A.

better service

B.

goodwill

C.

convenience

D.

control

Correct answer is C

No explanation has been provided for this answer.

607.

The sale of of foreign investment and gold reserves can be used to?

A.

correct adverse balance of trade

B.

increase invisible imports

C.

correct adverse balance of payment

D.

correct a budget deficit

Correct answer is A

No explanation has been provided for this answer.

608.

The abbreviation C and F indicate that the?

A.

production cost excludes the cost of carriage

B.

selling price includes the cost of carriage

C.

cost of production includes dilivery charges

D.

cost price includes the cost of carriage

Correct answer is B

C and F stand for cost and freight, used in contracts for international trade that specify that the seller of the goods is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain the items from the carrier.

609.

A share premium is an example of?

A.

issued capital

B.

capital stock

C.

equity capital

D.

capital reserve

Correct answer is D

A capital reserve is created out of capital profits such as cash received by selling current assets, the premium earned on the issue of share and debentures, excess on revaluation of assets and liabilities. It is an account on a balance sheet reserved for contingencies or to offset capital losses.

610.

The traditional way of paying cooperative dividend is to distribute profit in proportional to members'?

A.

subscriptions

B.

total savings

C.

volume of purchase

D.

contributions

Correct answer is C

Dividends are paid in proportion to the number of securities that an investor holds in a particular company. For instance, an investor with 1,000,000 worth of securities will most definitely get paid more dividends than someone with 800,000 worth of investments.