Factory overheads are also known as
direct manufacturing
direct expenses
indirect cost
direct labour
Correct answer is C
Factory overhead are costs necessary for production which are not directly traceable to a specific quantity of physical units e,g factory rent, depreciation, fuel, indirect wages etc.
Which of the following is not an advantage of control account?
difficulty in committing fraud
it can be used to detect missing figure C. helps to determine profit and loss
helps to determine profit and loss
helps in locating errors
Correct answer is A
The uses of control account are:
- location of errors
- prevention of fraud
- preparation of interim final account
- saves time
- easy detection of missing figures
The following was extracted from the books of MEGA COMPANY NIG. LTD
|
₦ |
|
|
Trade debtors |
350,000 |
|
Fixtures and fittings |
600,000 |
|
Cash at bank |
25,000 |
|
Cash in hand |
5,500 |
|
Trade creditors |
116,500 |
|
Bank overdraft |
7,500 |
|
Building |
950,000 |
|
Motor van |
35,000 |
The working capital of the company is
₦156,000
₦280,000
₦565,000
₦256,500
Correct answer is D
Working capital = Current Assets - Current Liabilites
= (350,000 + 25,000 + 5,500) - ( 116,500 + 7,500)
= 380,500 - 124, 000
= ₦256,500
In company account, dividend payments are effected in which of the following accounts?
Realization
Current
Appropriation
Capital
Correct answer is C
In company accounting, dividend payments are effected in the appropriation account. The appropriation account is a part of the profit and loss account where the net profit is appropriated or distributed among various heads like dividends, general reserve, etc.
Income and Expenditure account is the same as the --------- of a sole trader
balance sheet
trading account
profit and loss account
cash book
Correct answer is C
The income and expenditure account shows the summary of revenue and running cost of a non-profit making organization. It follows the same principles as the profit and loss account of a trading concern.