JAMB Accounting 2017 Objective — Question 3

Question 3 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2017 Objective paper, with the correct answer and a full explanation.

Which of the following is the capital reserve of a company?

A. A. Loss on forfeited shares
B. B. Retained profit
C. C. Accumulated depreciation
D. D. Share premiumCorrect

Explanation

Share premium is a capital reserve — it arises only occasionally (on share issue above par) and is restricted in how it may be used.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Accounting 2017 Objective More Accounting past papers