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Accounts - Principles of Accounts Past Questions

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2136

The accounting convention that state that, stock should be value that the lower of cost and net realized value is --------------- convention

  • A. marching
  • B. consistency
  • C. realization
  • D. prudency
View Answer & Discuss JAMB 2015
2137
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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2138

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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2139

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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2140

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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