Which of the following is found on the credit side of a profit and loss account?
Advertising
Dividend received
Wages and salaries
Bank charges
Correct answer is B
Dividend received as as revenue i.e income or money received in trading transactions. It is credited to the profit or loss account.
Current assets are shown in the balance sheet in order of performance as
debtors, stock, bank and cash
stock, debtors, bank and cash
stock, bank, debtors and cash
debtors, stock, cash and bank
Correct answer is B
The current assets are usually listed on the balance sheet in the following order:
- inventory (stock)
- account receivables e.g debtors
- marketables securities
- cash and cash equivalent
|
₦ |
|
|
Manufacturing wages |
42,000 |
|
Factory rent |
880 |
|
Raw materials: Stock 1/1/16 |
1,000 |
|
Purchases |
16,000 |
|
Stock 31/12/16 |
1,400 |
|
Depreciation of Plants and Machinery |
800 |
|
Royalties |
300 |
|
Indirect wages |
18,000 |
|
General indirect expenses |
620 |
What is the value of the indirect manufacturing cost?
₦57,900
₦18,200
₦20,300
₦23,000
Correct answer is C
Indirect cost = 880 + 800 + 18000 + 620
= ₦20,300
Which of these is not a subsidiary books?
Sales day book
Purchase day book
Credit note
Return inward day book
Correct answer is C
The subsidiary book is a book of original entry or prime entry which consists of: purchases day book, sales day book, returns inwards day book, returns outward day book, cash book, journal, petty cash book.
The effect of transaction when cash is paid into the bank is
Bank balance decrease and cash balance increase
Cash balance decrease and bank balance increase
Bank balance decrease and cash balance decrease
Cash balance increase and bank balance increase
Correct answer is B
When cash is paid into the bank, the cash balance decreases because you are taking cash out of your possession and depositing it into the bank. On the other hand, your bank balance increases because you are adding money to your bank account. Therefore, the effect of the transaction is that the cash balance decreases and the bank balance increases.