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Swali 1 Ripoti
Tanko Ltd had
The company's earnings yield is? |
Maelezo ya Majibu
The earnings yield is a measure of the return on investment for a company's earnings. It is calculated by dividing the earnings per share by the market price per share, and expressing the result as a percentage. In this case, Tanko Ltd's earnings per share is 47k (0.47 Naira), and its market price per share is NM1.50 (1.50 Naira). So, the earnings yield can be calculated as follows: Earnings yield = (Earnings per share / Market price per share) x 100% = (0.47 / 1.50) x 100% = 31.33% Therefore, the earnings yield for Tanko Ltd is 31.33%, which means that for every Naira invested in the company's stock, investors can expect a return of 31.33 Naira in earnings.
Swali 2 Ripoti
If the purchase price exceeds the net assets of a company, the excess amount is debited to________________
Maelezo ya Majibu
If the purchase price of a company exceeds the net assets, the excess amount is debited to the "goodwill account." Goodwill represents the value of a company's reputation, brand, customer relationships, and other intangible assets that are not included in the net assets of a company. When one company acquires another company for a price that exceeds the net assets of the acquired company, the difference between the purchase price and the net assets is attributed to the value of goodwill. Therefore, the excess amount is debited to the goodwill account to record the value of the intangible assets acquired in the transaction. This helps the acquiring company to reflect the true value of the acquired company's intangible assets on their balance sheet.
Swali 3 Ripoti
When a bill is negotiated to a bank , it is said to be?
Maelezo ya Majibu
When a bill is negotiated to a bank, it is said to be "discounted". Negotiating a bill means transferring ownership of the bill from the original holder to the bank. In exchange for this transfer, the bank pays the holder an amount that is less than the face value of the bill, usually with a fee for providing this service. This process is known as "discounting the bill" because the holder receives a discounted value for the bill. So, when a bill is negotiated to a bank, it is said to be "discounted" because the holder receives a discounted value for the bill in exchange for transferring ownership to the bank.
Swali 5 Ripoti
Use the information below to answer the question
Liabilities ₦ | Assets ₦ |
Capital 40,000 | Furnishing 10,000 |
Ceiling Fan 1,500 | |
Cash in Hand 28,500 | |
40,000 | 40,000 |
If at 31/1/95 the following information was ascertained;
(i) rent for shop ₦12,000 paid for the year
(ii) Total purchases ₦15,000
(iii) Total sales ₦8,200
(iv) Stock of goods left ₦10,000
(v) paid sales boy ₦500
If at 31/1/95 the following information was ascertained;
(i) rent for shop ₦12,000 paid for the year
(ii) Total purchases ₦15,000
(iii) Total sales ₦8,200
(iv) Stock of goods left ₦10,000
(v) paid sales boy ₦500
Maelezo ya Majibu
Swali 6 Ripoti
Subscription received during the year N30,000. Subscription owed last year N4,000. subscription received for next year N6,000.
Use the details above to answer the following question.
The N6,000 subscription received is?
Maelezo ya Majibu
The N6,000 subscription received is a current liability. A liability is a debt or obligation that a company owes to another party, which must be settled in the future. In this case, the N6,000 subscription received is for next year, which means that the company has not yet provided the goods or services for which the customer has paid. Therefore, the N6,000 subscription is an obligation that the company must fulfill in the future, making it a current liability. The N30,000 subscription received during the year is a revenue or income for the company, while the N4,000 subscription owed last year is a previous liability that was not settled in the past year. Both of these amounts are not related to the current question.
Swali 7 Ripoti
The main difference between the ordinary and preference shareholders is that?
Maelezo ya Majibu
Swali 8 Ripoti
Why should a new partner contribute towards goodwill on his admission?
Maelezo ya Majibu
Swali 9 Ripoti
Which of the following is a common cause of a discrepancy between head office and branch trial office________
Maelezo ya Majibu
Stock and cash in transit is a common cause of a discrepancy between head office and branch trial office. This is because stock and cash in transit are two types of assets that are often not recorded accurately in the accounts. Stock can be difficult to value and count accurately, especially if it is in transit between the head office and the branch. Cash in transit refers to cash that is in the process of being transferred between the head office and the branch, and may not be recorded in either account until it has arrived at its destination. If the stock or cash in transit is not recorded accurately, it can result in a discrepancy between the head office and branch trial balance. For example, if the branch has recorded the stock as received, but the head office has not yet recorded it as sent, the branch will have a higher stock value than the head office. Similarly, if the branch has recorded cash in transit as received, but the head office has not yet recorded it as sent, the branch will have a higher cash balance than the head office. , which suggests stock and repayment, is incorrect because repayment is not directly related to a discrepancy between head office and branch trial balance. , which suggests creditors and cash in transit, is also incorrect because creditors are liabilities and not directly related to the assets that are in transit between head office and branch. , which suggests debtors and cash in transit, is also incorrect because debtors are not assets that are in transit between head office and branch, and therefore not a common cause of discrepancy between head office and branch trial balance.
Swali 10 Ripoti
Transfers from the head office to branches are best carried out at__________
Maelezo ya Majibu
Transfers from the head office to branches are best carried out at cost plus mark-up. This is because cost plus mark-up allows the head office to recover the cost of producing the goods, and also make a profit to cover its own overheads and expenses. Selling price and market price may not be the best options because they do not take into account the actual cost of producing the goods, which could lead to overcharging or undercharging the branches. In contrast, cost plus mark-up ensures that the branches receive the goods at a fair price, while also allowing the head office to cover its own costs and make a profit. Overall, this method promotes transparency and fairness in the transfer process.
Swali 11 Ripoti
which of the following affects the accuracy and authenticity of trial balance?
Maelezo ya Majibu
Swali 12 Ripoti
The accumulated fund of a non-trading concern can equally be referred to as?
Maelezo ya Majibu
The accumulated fund of a non-trading concern can equally be referred to as the "surplus fund". This is because the surplus fund represents the excess of the organization's total assets over its total liabilities and any other committed funds. Non-trading concerns, such as non-profit organizations, do not operate for the purpose of making a profit for its members or shareholders. Instead, any surplus generated is used to further the organization's objectives or to invest in its activities in the future. The surplus fund can be seen as a reserve that the organization can draw on when needed. The other answer options, such as members equity, share capital, and general fund, are not necessarily applicable to non-trading concerns, and do not specifically refer to the accumulated fund. For example, share capital typically refers to the funds raised by a company through the sale of shares, while members equity typically refers to the ownership interest of the members in a company.
Swali 13 Ripoti
A cash book had a opening balance of N15,200, closing balance of N18,400 and total cash received during the period of N36,000. What was the amount of cash paid out during the same period?
Maelezo ya Majibu
Swali 14 Ripoti
Departmentalization of accounts is useful because it shows the____________
Maelezo ya Majibu
Departmentalization of accounts is useful because it shows the overall performance of a division. It allows a company to track the financial performance of individual departments or divisions within the company, providing insight into which areas of the business are performing well and which ones need improvement. By analyzing financial data for each department, managers can make informed decisions about allocating resources and making changes to improve overall company performance. This approach helps to ensure that each department is held accountable for its performance, and that managers have the information they need to make effective decisions about the allocation of resources. Ultimately, this can lead to improved financial performance for the entire company.
Swali 15 Ripoti
N | |
Direct material | 2,500 |
Direct labour | 5,000 |
Direct expenses | 1,000 |
Overhead expenses | 1,500 |
Use the information contained in the table to answer the question below.
From the data above, compute the prime cost.
Maelezo ya Majibu
To compute the prime cost, we need to add the cost of direct materials, direct labour, and direct expenses. Adding the figures for direct materials, direct labour, and direct expenses gives us: 2,500 + 5,000 + 1,000 = 8,500. Therefore, the prime cost of the product is N8,500. The prime cost represents the total cost of direct materials, direct labour, and direct expenses that are directly attributable to the production of a product or service. This cost is essential to know for any manufacturing or production-oriented business, as it is the basis for determining the total cost of production.
Swali 17 Ripoti
The rent expense for Trendy store is ₦3500. Trendy store has three departments; jewelry, hair dressing, and clothing. The floor spaces occupied by the departments are 3:2:5 respectively. What is the rent allocated to clothing department?
Maelezo ya Majibu
To allocate the rent expense to the clothing department, we need to use the ratio of the floor spaces occupied by each department. Let's first add up the ratio of the floor spaces: 3 + 2 + 5 = 10 This means that the clothing department occupies 5/10 (or 1/2) of the total floor space. To allocate the rent expense to the clothing department, we need to multiply the total rent expense by the proportion of the floor space that the clothing department occupies: ₦3500 x 1/2 = ₦1750 Therefore, the rent allocated to the clothing department is ₦1750. So, the correct answer is option (C) ₦1750.
Swali 18 Ripoti
The excess of sales over cost of goods sold is?
Maelezo ya Majibu
The excess of sales over cost of goods sold is called "gross profit". Gross profit represents the amount of money that a company earns from selling its products or services, minus the direct costs associated with producing those products or services. For example, if a company sells a product for $100 and it costs $60 to produce that product, the company's gross profit would be $40. This means that for every product sold, the company earns $40 that can be used to cover other expenses like salaries, rent, and marketing. It's important to note that gross profit is different from net profit. Net profit is the total amount of money a company earns after all of its expenses, including indirect costs like overhead and taxes, have been subtracted from its revenue. Gross profit, on the other hand, only takes into account the direct costs associated with producing and selling products or services.
Swali 19 Ripoti
N | N |
Capital 39,000 | Land 20,000 |
Long Term Loan 15, 000 | Building 30,000 |
Creditors 9,000 | Stock 40,000 |
Debtors 6,000 | |
Accrued wages 5,000 | Cash 8, 000 |
68,000 | 68,000 |
Use the information above to answer the question:
The acid test ratio in the company is ___________
Maelezo ya Majibu
Swali 20 Ripoti
Use the information below to answer the question.
Calculate the balance in the bank statement.
? | |
Balance as per cashbook |
13560 |
Unpresented cheques |
5120 |
Dividend received |
2000 |
Uncredited cheque |
2300 |
Bank charges |
280 |
Standing order |
600 |
Balance as per bank statement |
? |
Maelezo ya Majibu
Swali 21 Ripoti
₦ | |
Stock at branch 1st January at cost |
400 |
Goods sent to branch at cost |
8000 |
Returns to head office |
340 |
Cash sales |
9160 |
Stock at branch 31st December at cost |
720 |
Use the information below to answer the question.
Adex Ltd. Issues stock to its retail branches at cost price.
Calculate the cost of goods credited to the head office trading account.
Maelezo ya Majibu
Swali 22 Ripoti
Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?
Maelezo ya Majibu
Swali 23 Ripoti
N | |
Purchase ledger opening balance | 4,000 |
sales ledger opening balance | 6,000 |
credit purchase | 25,000 |
Discounts allowed | 1,000 |
Returns inwards | 2,000 |
Credit sales during the year | 10,000 |
Return outwards | 6,000 |
Use the information above to answer the following question;
Calculate the sales ledger balance.
Maelezo ya Majibu
Swali 24 Ripoti
In the head office ledger, the value of goods sent to the branch are____________
Maelezo ya Majibu
In the head office ledger, the value of goods sent to the branch are debited to the branch current account. When a company sends goods from the head office to the branch, this is known as a branch transfer. The value of these goods should be recorded in the head office ledger as a debit to the branch current account. This is because the head office is effectively lending the goods to the branch, and the branch will need to repay the head office for these goods at a later date. The branch current account is a type of account in the head office ledger that is used to track the transactions between the head office and the branch. All transactions relating to the branch, such as branch transfers, expenses paid by the head office on behalf of the branch, and cash sent to the branch, are recorded in the branch current account. Therefore, when the head office sends goods to the branch, the value of these goods is recorded as a debit to the branch current account in the head office ledger. This means that the branch owes the head office for the goods received, and the head office can use this information to track the balance owed by the branch. In summary, the value of goods sent to the branch from the head office is debited to the branch current account in the head office ledger, as this account is used to track all transactions between the head office and the branch.
Swali 25 Ripoti
The main objective of accounting report is to provide information about?
Maelezo ya Majibu
Swali 26 Ripoti
In the absence of a partnership deed, the act stipulates that____________
Maelezo ya Majibu
Swali 27 Ripoti
A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.
The yearly depreciation using the straight line method would be
Maelezo ya Majibu
The straight-line method of depreciation assumes that an asset decreases in value evenly over its useful life. To calculate the yearly depreciation using the straight-line method, we need to subtract the scrap value from the original cost and then divide the result by the number of years of the asset's useful life. The original cost of the machine is N35,000, and the scrap value is N9,000. Therefore, the depreciable value of the machine is: Depreciable value = Original cost - Scrap value = N35,000 - N9,000 = N26,000 The useful life of the machine is 5 years. Therefore, the yearly depreciation is: Yearly depreciation = Depreciable value / Useful life = N26,000 / 5 = N5,200 So the yearly depreciation using the straight-line method for this machine is N5,200. Therefore, option C is the correct answer.
Swali 28 Ripoti
In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________
Maelezo ya Majibu
In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a debit entry. Remittance in transit refers to funds that have been sent from the branch to the head office, but have not yet been recorded in the head office's books. When reconciling the accounts, this amount is recorded as a debit in the branch's books because the branch has already sent the funds, but they have not yet been received and recorded by the head office. The debit entry in the branch's books serves to reduce the branch's cash balance, while the corresponding credit entry in the head office's books, when it is eventually recorded, will increase the head office's cash balance. This treatment of remittance in transit as a debit entry is a common practice in accounting and helps to ensure that the accounts are reconciled accurately and that the cash balances in both the branch and head office are correctly reflected.
Swali 30 Ripoti
Gross profit in the branch adjustment account is transferred to the branch____________
Maelezo ya Majibu
Swali 31 Ripoti
N | |
Purchase ledger opening balance | 4,000 |
sales ledger opening balance | 6,000 |
credit purchase | 25,000 |
Discounts allowed | 1,000 |
Returns inwards | 2,000 |
Credit sales during the year | 10,000 |
Return outwards | 6,000 |
Use the information above to answer the following question;
What is the purchase ledger balance?
Maelezo ya Majibu
Swali 33 Ripoti
Which of the following is not a type of branch?
Maelezo ya Majibu
"Single branch" is not a type of branch. A branch refers to an additional location of a business, separate from its main or headquarters location. A dependent branch is a location that relies on the head office for support and decision making. An independent branch operates separately from the head office, making its own decisions and managing its own resources. A foreign branch is a location established in a foreign country. However, "single branch" is not a type of branch. It simply refers to a situation where a business has only one location or branch.
Swali 34 Ripoti
Kakaku limited with three departments has a total of N7,200,000 as net debtors for the year ended 31/12/2106. The company's policy, provides for 15%bad debt annually. Which of the following represents the total balance of debtors before adjustment?
Maelezo ya Majibu
Swali 35 Ripoti
Subscription received during the year N30,000. Subscription owed last year N4,000. subscription received for next year N6,000.
Use the details above to answer the following question.
What is the subscription to be charged to income and expenditure account?
Maelezo ya Majibu
The subscription to be charged to the income and expenditure account is N36,000. This is because the subscription received during the year is N30,000, the subscription owed from the previous year is N4,000 and the subscription received for the next year is N6,000. Adding up these three amounts gives us N30,000 + N4,000 + N6,000 = N36,000. So, the total subscription to be charged to the income and expenditure account is N36,000.
Swali 36 Ripoti
The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________
Maelezo ya Majibu
The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the Auditor General. The Auditor General is an independent body that audits and reports on the government's financial statements, ensuring that public expenditures are legal and authorized, and are within budgeted amounts. The Auditor General is responsible for reviewing and examining all financial records of the government, ensuring that financial transactions are recorded accurately, and that financial reporting is transparent and in compliance with the applicable laws and regulations. The Auditor General is usually appointed by the government, and the office is independent of any particular government department. This independence ensures that the Auditor General can operate impartially and without undue influence from any particular government agency. The Auditor General is a vital part of ensuring the accountability and transparency of government finances and plays a critical role in maintaining public trust in government institutions.
Swali 37 Ripoti
N | |
sales | 20,000 |
cost of sales | 10,000 |
operating expenses | 2,500 |
expenses prepaid included in operating expenses | 500 |
Use the information above to answer the following question.
Calculate the net profit.
Maelezo ya Majibu
Swali 39 Ripoti
Mrs. Okoro who lives in the riverine community of Rivers State makes her living through crabbing and fishing. This type of occupation is?
Swali 40 Ripoti
Tanko Ltd had Earnings per share 47k |
Dividends per share 30k |
Per value of each share N1.20 |
market price per share NM1.50 |
Maelezo ya Majibu
The price-earnings (P/E) ratio of the company can be calculated by dividing the market price per share by the earnings per share (EPS). The P/E ratio shows how much investors are willing to pay for each Naira of the company's earnings. In this case, to calculate the P/E ratio for Tanko Ltd: Market price per share / Earnings per share = P/E ratio N1.50 / N0.47 = N3.19 So, the P/E ratio for Tanko Ltd is N3.19. This means that investors are willing to pay N3.19 for every Naira of the company's earnings. In simple terms, the P/E ratio is a measure of how much investors are willing to pay for every Naira of the company's earnings and in this case, the P/E ratio for Tanko Ltd is N3.19.
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