JAMB Accounting 2017 Objective — Question 32

Question 32 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2017 Objective paper, with the correct answer and a full explanation.

Share premium can be used to: I. Write off preliminary expenses. II. Give loans to employees. III. Pay dividends.

A. A. I and III only
B. B. I onlyCorrect
C. C. II and III only
D. D. I and II only

Explanation

Share premium may only be used for specific purposes such as writing off preliminary (formation) expenses — not for paying dividends or staff loans.

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