JAMB Accounting Past Questions & Answers - Page 246

1,226.

A business is required at par when the

A.

Purchase consideration equals goodwill

B.

Purchase consideration equals net value

C.

Purchase consideration is greater than the net value

D.

Net assets is greater than the liabilities

Correct answer is B

No explanation has been provided for this answer.

1,229.

An item of appropriation in partnership profit and loss account is

A.

Interest on partners' capital

B.

Interest on partners' loan

C.

Employees' salaries

D.

Partners' drawings

Correct answer is A

No explanation has been provided for this answer.

1,230.

When a purchase business is revalued, the effect is that

A.

A decrease in the value of asset has no effect on value of goodwill

B.

An increase in the value of asset is treated as an increase in the value of goodwill

C.

A decrease in the value of asset is treated as an decrease in the value of goodwill

D.

An increase in the value of asset is treated as an decrease in the value of goodwill

Correct answer is D

No explanation has been provided for this answer.