The purchases ledger control account is also known as
bill payable control account
credit purchase control account
creditors control account
total purchase
Correct answer is C
The purchases ledger control account is also known as the creditors control account. This account is used in a business's accounting to record the total amount owed to suppliers for purchases made on credit. It is a summary account that reflects the total amount payable to all suppliers.
Which of these is not method of stock valuation?
FIFO method
Base method
Standard method
LIFO
Correct answer is C
The methods of stock valuation are: FIFO, LIFO, Weighted Average Price Method, Simple Average Price Method, Base stock method.
|
₦ |
|
|
Plant and Machinery |
190000 |
|
Motor Vehicle |
170000 |
| Stock | 60000 |
|
Current Liabilities |
50000 |
|
Purchase consideration |
40000 |
The goodwill is?
₦110,000
₦30,000
₦90,000
₦80,000
Correct answer is B
Goodwill = Purchase consideration - value of assets
Total value of assets = 190,000 + 170,000 + 60,000 - (50,000)
= 370,000
Therefore, Goodwill = 400,000 - 370,000
= ₦30,000
The short term solvency of a company is determined with ------- ratio
Acid test
Gross profit margin
Debt to equity
Current
Correct answer is D
The current or working capital ratio is a test of a business's short-term solvency — its capability to pay its liabilities that come due in the near future (up to one year).