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Accounts - Principles of Accounts 2015 JAMB Past Questions

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21
What does liquidity ratio measure?
  • A. measures operating efficiency of a company
  • B. measures the ability of a company to meet its current obligations.
  • C. measures the value of investments of a company
  • D. measures the financial leverage of a company
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22

Derive the stock turnover period.(Average stock = 23,000. Cost of sales = 300,000 year = 365 days).

  • A. 28 days
  • B. 42 days
  • C. 27 days
  • D. 23 days
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23

The following accounting entries are made when bad debt is recovered

  • A. debit bad debts accounts and credit bad debt recovered account
  • B. debit debtors accounts and recovered account
  • C. debit bad debts recovered account and credit bad debts account
  • D. debit bad debts account and credit profit and loss account
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24

One of the items listed below will not be found in a company’s memorandum and article of association. Which is it?

  • A. objects and their alteration
  • B. location of business
  • C. bank signatories
  • D. powers of directors
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25
The act of making necessary adjustment after comparing the actual cost with targeted cost is cost ----------------------------
  • A. conversion
  • B. control
  • C. allocation
  • D. analysis
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