A part of public company's profit belonging to the shareholders is
Right issue
Bonus
Dividends
Public issue
Correct answer is C
Dividends are a part of a public company's profit that is distributed to shareholders. It is a way for companies to distribute a portion of their earnings back to their shareholders. Public issue, bonus, and right issue are not parts of a company's profit that belong to the shareholders
|
₦ |
|
|
Debtors opening |
4000 |
| Debtors closing | 1500 |
|
Cash received from debtors |
8500 |
|
Bad debts written off |
350 |
| Discount allowed | 500 |
| Discount received | 1000 |
What is the amount of sales for the year?
₦6850
₦6650
₦3850
₦1550
Correct answer is A
The amount of sales for the year is calculated using the formula: Opening Debtors + Sales - Cash received from debtors - Closing Debtors + Bad debts written off + Discount allowed - Discount received. Plugging in the given values, we get: 4000 + Sales - 8500 - 1500 + 350 + 500 - 1000 = Sales. Solving for Sales, we get Sales = 6850.
The use of three column cash book is determined by
Trade discount
Cash transaction
Bank transaction
Cash discount
Correct answer is D
The cash discount is allowed for prompt payment of an account or for payment within a specified period of time. It is divided into discount allowed and discount received.
The following are importance of branch account except
It allows fraud and wastage of resources
It assist the organization to determine the performance of a branch manager
It enable the organization to determine the branch that is making either profit or loss
It allows proper control over the branch by the head office
Correct answer is A
The importance and objectives of branch account are:
- to access the performance of the branches
- to prevent wastage
- to prevent fraud and other malpractices
- to ascertain the profit or loss for each branch