Use the following information to answer this question.
N2,800
N1,000
N2,500
N3,000
Correct answer is B
Being that debtors balance minus bad debt written off multiplied by 10% and subtracted from the initial provision
28000 – 3000 = 25,000 X 10% = 2500
:. 2500 – 1500 = 1,000 (increase in provisions)
If rent account is debited instead of rate account, the error committed is that of;
Omission
Commission
Principle
Original entry
Correct answer is A
Error of omission: An error that occurs when action has not been taken or when something has been left out.
The loss made by a non profit making organization is called
Deficit
Surplus
Discount
Shortage
Correct answer is A
A deficit occurs for a nonprofit organization whenever its expenses exceed its revenue . deficit in a non for profit making organization stands for loss and it is the excess of expenses over bar profit and other income.
Prospectus
Memorandum of association
Company law
Articles of association
Correct answer is D
The article of association center on the rules and regulation governing the internal working of the company. It’s totally in line with the question.
An advantage of using accounting ratios is that
Can be easily calculated
Show errors and frauds
Facilitate decision making
Are stipulated by law
Correct answer is C
Accounting ratios helps management in taking decision the totality of the activities in an organization