JAMB Accounting 2013 Objective — Question 46

Question 46 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2013 Objective paper, with the correct answer and a full explanation.

The distributable profit available to shareholders at the end of each year are the

A. total profit and debtors balance
B. general reserve and retained profit
C. retained profit and fictitious assets
D. total profit less creditors balanceCorrect

Explanation

The distributable profit available to shareholders is derived as total profit less amounts owed (creditors balance) — per the printed answer key the correct option is labelled D.

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