JAMB Accounting Past Questions & Answers - Page 255

1,271.

The market price per ordinary share of a corporation listed on the stock exchange is most closely related to its?

A.

Earning per share

B.

Redemption price per share

C.

Book value per share

D.

Call price per share

Correct answer is D

No explanation has been provided for this answer.

1,272.

If a sole proprietorship is purchased for cash, then?

A.

The purchaser debits his business purchase account with the consideration he pays

B.

All assets and liabilities must be bought

C.

Goodwill results where value of assets

D.

The vendor debits his business purchase account with the considerstion he receives

Correct answer is A

No explanation has been provided for this answer.

1,273.

Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business,

A.

They will simply continue since there are no new members

B.

The partnership is formally ended and new company books opened

C.

The shares and all other items will be shared equally and not in their former ratios

D.

Computation of goodwill must be done as it is legally required

Correct answer is B

No explanation has been provided for this answer.

1,274.

When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner's?

A.

Goodwill account balance

B.

Current account credit balance

C.

Current account debit balance

D.

Profit and loss credit balance

Correct answer is C

No explanation has been provided for this answer.