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"Company Accounts" question number distribution across years
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WAEC questions for "Financial Accounting :: Company Accounts"
Q1

A document which acknowledges that a company owes a person a stated sum of money with an agreement to pay a fixed rate of interest periodically is

A

share certificate

B

allotment certificate

C

preference certificate

D

debenture certificate

E
Q2

The document making a public offer for the sale of a company's share is

A

Memorandum of Association

B

Articles of Association

C

Prospectus

D

Certificate of Registration

E
Q3

What is the amount of preference dividend payable for the year?

A

Le 600,000

B

Le 500,000

C

Le 300,000

D

Le 5,000

E
Q4

What is the amount of the share premium?

A

Le 9,000,000

B

Le 5,000,000

C

Le 3,000,000

D

Le 2,400,000

E
Q5

The value of the ordinary share capital to be stated in the balance sheet is

A

Le 9,000,000

B

Le 7,200,000

C

Le 4,800,000

D

Le 4,000,000

E
Q6

Prepayment is treated in the balance sheet of firm as a

A

fixed asset

B

long-term liability

C

current asset

D

current liability

E
Q7

A debenture holder is

A

creditor

B

promoter

C

debtor

D

shareholder

E
Q8

A stock as a form of capital of a company comprises

A

tons of merchandise

B

units of goods

C

units of shares

D

bundles of war

E
Q9

The balance of the profit and loss appropriation account as at the end of the year was

A

₦16,000

B

₦10,000

C

₦5,400

D

₦1,400

E
Q10

The authorised capital of Tale Ltd is

A

₦176,000

B

₦166,000

C

₦160,000

D

₦16,000

E
Q11

The dividend payable to preference shareholder is

A

₦9,000

B

₦6,000

C

₦3,000

D

₦2,400

E
Q12

Which of the following terms is not used to describe the total amount stated in the memorandum of association approved by the registrar of companies?

A

Authorised capital

B

Registered capital

C

Issued capital

D

Nominal capital

E
Q13

The class of share to which payment of dividend depends on profit is

A

forfeited shares

B

ordinary shares

C

bonus shares

D

preference shares

E
Q14

Payment for shares in instalments is done by means of

A

calls

B

circulars

C

subscription

D

invitation

E
Q15

Which of the following formulae is used to calculate stock turnover rate?

A

sales / Average stock

B

Cost of Sales / Average stock

C

Cost of sales / Closing stock

D

Cost of sales / Opening stock

E
Q16

Current ratio is

A

4:1

B

3:1

C

2:1

D

1:1

E
Q17

Quick ratio is

A

4:1

B

3:1

C

2:1

D

1:1

E
Q18

The maximum amount which a company is allowed to raise through the sale of shares is

A

authorised capital

B

paid-up capital

C

issued capital

D

working capital

E
Q19

Holders of ordinary shares do not have the right to

A

participate in additional issue of shares

B

vote at annual general meetings

C

elect the board of directors

D

receive dividends at a predetermined rate

E
Q20

An example of capital gain is

A

premium

B

bonus

C

shares

D

debentures

E
Q21

Which of the following attracts a fixed rate of dividend?

A

Ordinary shares

B

founders' shares

C

Preference shares

D

Deferred shares

E
Q22

The amount set aside out of profits earned by a company which are not meant for liability or contigency are

A

dividends

B

provisions

C

retained profits

D

reserves

E
Q23

If no profit is to be retained, proposed preference shares dividend is

A

₦28,000

B

₦16,000

C

₦12,000

D

₦4,000

E
Q24

If no profit is to be retained, proposed ordinary shares dividend is

A

₦48,000

B

₦44,000

C

₦40,000

D

₦28,000

E
Q25

The dividend per ordinary share for the year is

A

₦0.88 kobo

B

₦0.40 kobo

C

₦0.20 kobo

D

₦0.17 kobo

E
Q26

In company accounts, profit after tax is shared in the

A

appropriation account

B

revaluation account

C

current account

D

realization account

E
Q27

Ebrima's share of profit was

A

D10,440

B

D9,900

C

D7,560

D

D6,600

E
Q28

Jaiteh's share of profit was

A

D10,440

B

D9,900

C

D7,560

D

D6,600

E
Q29

Which of the following ratios measure the ability of a firm to meet short-term obligations?

A

Net profit margin

B

Quick assets ratio

C

Turnover ratio

D

Creditors ratio

E
Q30

When shares are sold at less than the nominal value, it means they are issued at

A

a premium

B

a loss

C

a discount

D

par

E
Q31

A class of preference shares in which dividends rights are carried forward is

A

cumulative

B

participating

C

redeemable

D

floating-rate

E
Q32

The class of shareholders who paid last in the event of winding-up are

A

Ordinary

B

Preference

C

Founder

D

Treasury

E
Q33

The price paid by an acquiring company is

A

conversion fee

B

premium

C

sales consideration

D

purchase consideration

E
Q34

A unit of a company's capital which can be bought is

A

share

B

interest

C

asset

D

property

E
Q35

The document which advertises the sale of shares of a company is a/an

A

prospectus

B

debenture

C

statement

D

invoice

E
Q36

The amount available as dividend to ordinary shareholders is

A

₦75,000

B

₦65,000

C

₦55,000

D

₦52,000

E
Q37

Preference dividend for the year is

A

₦20,000

B

₦10,500

C

₦10,000

D

₦7,500

E
Q38

Dividend per ordinary share is

A

₦1.00

B

₦0.50

C

₦0.45

D

₦0.40

E
Q39

Which of the following brings a company into legal existence?

A

Certificate of Incorporation

B

Memorandum of Association

C

Articles of Association

D

Company Law

E
Q40

The account that shows both the cash and bank transactions of an enterprise is

A

Appropriation Account

B

Trading Account

C

Profit and Loss Account

D

Cash Book

E
Q41

The document authorising an officer to incur expenditure is known as

A

virement

B

budget

C

warrant

D

vote

E
Q42

When shares are oversubscribed, the promoter may decide to scale down. When this is done, the shares are issued proportionately

A

on pro-rata

B

at discount

C

at par

D

at premium

E
Q43

The price paid for the purchase of a business is

A

credited to the Cash Account and debited to the Vendor's Account

B

debited to Cash Account and credited to Vendor's Account

C

debited to Business Purchase Account and credited to Asset Account

D

credited to Cash Account and debited to Asset Account

E
Q44

The income accruing to debenture holders is called

A

dividend

B

not profit

C

shares

D

interest

E
Q45

Which of the following is not an example of fictitious asset?

A

Raw materials stock

B

Debit balance of Profit and Loss Account

C

Premilinary expenses of a limited company

D

Expenditure on incorporation carried forward

E
Q46

Which of the following explains the short term solvency of a company?

A

Acid test ratio

B

Debtor to equity ratio

C

Net profit ratio margin

D

Gross profit margin ratio

E
Q47

Which of the following are correct about a limited liability company?

I. Members have power to bind the company

II. Perpetual succession

III. Certificate of Incorporation

IV. Wound-up on death of a shareholder

A

II and III only

B

I and IV only

C

II and IV only

D

I and III only

E
Q48

Issue of prospectus is an invitation to members of the public to

A

subscribe for shares

B

register a company

C

redeem shares

D

liquidate a company

E
Q49

Acid test ratio is

A

1:8:1

B

1:7:1

C

1:4:1

D

1:2:1

E
Q50

Which of the following is not an intangible asset?

A

Licences

B

Patent

C

Trade marks

D

Fixtures

E
Q51

Shares sold at the nominal value are issued at

A

discount

B

premium

C

a loss

D

par

E
Q52

In a bonus issue of one new share for every four held, a holder of 100,000 shares will get an additional shares of

A

50,000

B

25,000

C

20,000

D

10,000

E
Q53

Expenses incurred when incorporating a company are

A

preliminary expenses

B

selling expenses

C

administrative expenses

D

financial expenses

E
Q54

Company tax paid is debited to

A

Profit and Loss Appropriation Account

B

Manufacturing Account

C

Profit and Loss Account

D

Trading Account

E
Q55

Dividend proposed by a company is shown in the Balance sheet as

A

current asset

B

current liability

C

long-term liability

D

fixed asset

E
Q56

The main classes of shares are

A

Preference Shares and Right Issue

B

Fixed shares and Current Shares

C

Ordinary Shares and Preferencce Shares

D

Redeemable Shares and Irredeemable Shares

E
Q57

What is the current ratio?

A

4:1

B

3:1

C

2:1

D

1:1

E
Q58

The debt to equity ratio is

A

1:4:()

B

1:4

C

1:3

D

1:2:3

E
Q59

What is the working capital?

A

₦180,000

B

₦140,000

C

₦88,000

D

₦66,000

E
Q60

The equity capital is

A

₦203,000

B

₦180,000

C

₦140,000

D

₦88,000

E