WAEC Accounting Past Questions & Answers - Page 23

114.

An event that will not require a change in the profit-sharing ratio of partners in a firm is when

A.

A partner dies

B.

A partner retires

C.

A new partner is admitted

D.

Partners assets value appreciates

Correct answer is D

No explanation has been provided for this answer.

115.

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

A.

Preference shareholders

B.

Debenture holders

C.

Ordinary shareholders

D.

Trade creditors

Correct answer is C

Ordinary Shareholders represent people who have a fraction of ownership in a corporation that issues such shares. They get to vote on the company's major decisions, usually decided at its shareholder meetings. The shareholder may or may not receive a dividend. They are usually the last to get paid in the event that the company is folding up.