Bought motor vehicle ₦60 paying by cheque. The effect of the transaction will be
Increase in assets of motor vehicle account
Decrease in assets of motor vehicle account
Increase in assets of bank account
Increase in liabilities of bank account
Correct answer is A
The motor vehicle account is the receiver while bank account is giving out. Therefore, there will be an increase in motor account and a decrease in bank account.
Majority of commercial transactions are termed credit transactions, which means
The buyers pay immediately for goods bought
Settlement is deferred to a future date
No account will be opened
Item of expenditure increases
Correct answer is B
In credit transactions, the transfer of ownership takes place before payment to the supplier i.e settlement is at a future safe.
One of these is not a similarity between Joint Venture and Partnership.
AIM is profit making
It is for a specific venture
Involves two people
Have rights and duties
Correct answer is B
Joint venture is for a specific venture while partnership is for a perpetual succession.
FIFO
LIFO
SAP
WAP
Correct answer is D
Weighted Average Price (WAP): Under this method issues are priced at a weighted average price which is obtained by dividing the value by the unit of stock in hand. Issues will continue to be priced at this price until a new batch is received when a new weighted Average price is calculated.
Accounting standards are issued at the International level by the
Standards Advisory Council
International Accounting Standards Board
Nigerian Accounting Standards Board
Standing Interpretations Committee
Correct answer is B
Accounting standard is a statement issued by the appropriate standard - setting body locally or internationally on a specific area or topic in Financial Accounting.
Accounting standards are issued at the International level by the International Accounting Standards Board (IASB) - formerly International Accounting Standards Committee (IASC).