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JAMB Accounting 2008 Objective — Question 45

Question 45 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2008 Objective paper, with the correct answer and a full explanation.

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Use the information below to answer question 45 and 46: Uju Nig. Ltd. Balance Sheet (Extract): Capital 200 000, Land and building 250,000; Net profit 50,000, Stock 120,000; 5% debenture 100,000, Debtors 50,000; Creditors 80,000, Bank 10,000. The debit ratio is approximately

  • A. 43%
  • B. 42%Correct
  • C. 41%
  • D. 23%

Explanation

Debt ratio = Total liabilities/Total assets = 180,000/430,000 x 100 = 42%.

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