JAMB and WAEC Accounts (Principles of Accounts) questions

609 questions with answers and explanations. Tap an option to check yourself.

1. Question 161· Company accounts· WAEC

   100,000 ordinary shares of ₦1 each are issued at ₦1.50 each. Find the share premium.

   • A₦50,000
   • B₦150,000
   • C₦100,000
   • D₦1.50

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   Explanation and discussion

2. Question 162· Company accounts· JAMB

   Debenture holders of a company are

   • Aowners entitled to vote
   • Bmembers sharing residual profit
   • Ccreditors entitled to fixed interest
   • Ddirectors of the company

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3. Question 163· Company accounts· WAEC

   Share premium arises when shares are issued

   • Afree to directors
   • Bat their nominal value
   • Cbelow their nominal value
   • Dabove their nominal value

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   Explanation and discussion

4. Question 164· Company accounts· JAMB

   Interim dividends are

   • Ainterest on debentures
   • Bpaid after liquidation
   • Cpaid during the financial year before final results
   • Dpaid only to directors

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   Explanation and discussion

5. Question 165· Company accounts· JAMB

   Shares issued below their nominal value are issued at a

   • Abonus
   • Bpremium
   • Cpar
   • Ddiscount

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6. Question 166· Company accounts· WAEC

   Preference shareholders receive

   • Ainterest on loans
   • Bvariable dividends
   • Cdividends at a fixed rate before ordinary shareholders
   • Dno dividend

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   Explanation and discussion

7. Question 167· Company accounts· JAMB

   A company has 400,000 ordinary shares of ₦2 each, fully paid, and declares a dividend of 10%. The total dividend is

   • A₦800,000
   • B₦40,000
   • C₦80,000
   • D₦8,000

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8. Question 168· Company accounts· JAMB

   The maximum amount of share capital a company may issue according to its memorandum is the

   • Aissued capital
   • Bauthorised capital
   • Ccalled-up capital
   • Dpaid-up capital

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9. Question 169· Company accounts· JAMB

   Capital reserves such as share premium

   • Acannot normally be distributed as cash dividends
   • Bare paid as dividends
   • Care liabilities
   • Dare expenses

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10. Question 170· Company accounts· WAEC

    Authorised share capital is

    • Athe shares fully paid
    • Bthe shares already issued
    • Cthe maximum share capital a company may issue
    • Dthe debentures

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11. Question 171· Company accounts· JAMB

    A general reserve is created by

    • Aissuing shares
    • Btransferring part of the profit to it
    • Cborrowing
    • Dselling assets

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    Explanation and discussion

12. Question 172· Company accounts· JAMB

    A company issued 600,000 ordinary shares of ₦1 each at ₦1.50 per share. The share premium is

    • A₦600,000
    • B₦900,000
    • C₦300,000
    • D₦150,000

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    Explanation and discussion

13. Question 173· Company accounts· WAEC

    Ordinary shares carry

    • Afirst claim when the company is wound up
    • Ba fixed rate of interest
    • Cno rights at all
    • Dvoting rights and variable dividends

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14. Question 174· Company accounts· WAEC

    The amount of share capital a company is permitted to issue was traditionally called

    • Acalled-up capital
    • Bauthorised capital
    • Cpaid-up capital
    • Dworking capital

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15. Question 175· Company accounts· JAMB

    Interest on debentures is

    • Aan appropriation of profit
    • Ban expense charged before profit is appropriated
    • Ca dividend
    • Dcapital

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16. Question 176· Company accounts· JAMB

    A company declares a 10% dividend on 500,000 ordinary shares of ₦2 each. Find the total dividend.

    • A₦200,000
    • B₦50,000
    • C₦100,000
    • D₦1,000,000

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17. Question 177· Company accounts· JAMB

    Preference shareholders differ from ordinary shareholders because preference shareholders

    • Ahold debentures
    • Bhave more votes
    • Care creditors of the company
    • Dreceive a fixed rate of dividend before ordinary shareholders

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18. Question 178· Company accounts· WAEC

    A company issued 50,000 ordinary shares of 50 kobo each at 80 kobo. The share premium account is credited with

    • A₦10,000
    • B₦25,000
    • C₦40,000
    • D₦15,000

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19. Question 179· Company accounts· WAEC

    A company issues 100,000 ordinary shares of ₦1 each at ₦1.50. The share premium is

    • A₦100,000
    • B₦150,000
    • C₦50,000
    • D₦1.50

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    Explanation and discussion

20. Question 180· Company accounts· JAMB

    Debenture interest is

    • Aa charge against profit
    • Ban appropriation of profit
    • Ca dividend
    • Da reserve

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    Explanation and discussion