JAMB Accounting Past Questions & Answers - Page 149

741.

The basis upon which assets of an organization is valued is the

A.

Historical concept

B.

Business entity concept

C.

Periodicity concept

D.

Materiality concept

Correct answer is A

The historical cost concept (also known as cost principle of accounting) states that the assets and liabilities of a business should be presented in accounting records at their historical cost.

742.

A chain store is known as?

A.

Department store

B.

Multiple store

C.

Supermarket

D.

Hypermarket

Correct answer is B

No explanation has been provided for this answer.

743.

An unfavourable balance of trade for a country means that her?

A.

Imports exceed exports

B.

Visible exports exceed invisible import

C.

Invisible exports exceed visible exports

D.

Imports and exports are equal

Correct answer is A

No explanation has been provided for this answer.

744.

Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?

A.

N125,000

B.

N500,000

C.

N50,000

D.

N25,000

Correct answer is C

No explanation has been provided for this answer.

745.

Share premium can be used to?
i. Write off discount on shares 
ii. Give loans to directors
iii. Pay dividends
iv. Pay company's formation expenses.

A.

i and iv only

B.

i and iii only

C.

ii and iii only

D.

iii and iv only

Correct answer is B

No explanation has been provided for this answer.