In manufacturing accounts, finance expenses are charged to the
Departmental account
Trading accountÂ
Profit and loss account
Balance sheet
Correct answer is C
profit and loss account is an account in the books of an organization to which incomes and gains are credited and expenses and losses debited, so as to show the net profit or loss over a given period.
Which of the following is a debit item in the sales ledger control account?
Cheque reciepts
Dishonoured cheques
Discount allowed
Bills receivable
Correct answer is D
The sales ledger control account is used to monitor the amounts owed by customers to your business. it contains transactions related to all the trade receivables (all the debtors) in the business,
Bills receivables are drawn when a vendor or seller makes any credit sale to the business.
Purchasers ledger control account can also be referred to as
Sales day book
Purchasers day book
Creditors ledger
Debtors ledger
Correct answer is C
The Creditors Ledger accumulates information from the purchases journal. The purpose of the Creditors Ledger is to provide knowledge about which suppliers the business owes money, and how much. It is also known as accounts payable or purchase journal.
In sales ledger control account, returns inwards is usually
Debited and debtors credited
Credited and sales returns debited
Debited and cash credited
Credited and bank credited
Correct answer is B
Remember sales ledger control accounts keeps count of all sales made on credit. If a customer returns goods that were sold on credit, we debit sales returns account and credit returns inwards
The LIFO method has an advantage over FIFO in that stocks are valued at
Previous prices
Current prices
Average rates
Flat rates
Correct answer is B
LIFO is used by firms to lower their tax liabilities at the expense of an outdated inventory value as reflected on the balance sheet.