JAMB Accounting Past Questions & Answers - Page 130

646.

Which of the following is a source of revenue to the federation account?

A.

Market fees

B.

Bicycle licences

C.

Tarrifs

D.

Property rates

Correct answer is C

Tariff is a tax or duty to be paid on a particular class of imports or exports. It is a source of revenue to the government because these taxes are paid to the government of the importing country.

 

647.

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

 

648.

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

649.

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.


 

650.

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