The income and expenditure account differs from receipts and payments account because it
Accounts for notional charges
Records transactions that relate to the period on cash basis
Records transactions that relate to the period on accrual basis
Accounts for balance of cash at bank
Correct answer is B
Receipts and payments account is a summary of cash transactions for a period and it is a real account. Income and expenditure account is a summary of expenditure and income like trading and profit and loss account and it is a nominal account.
When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at
A price above or below the stipulated price
Any price but not below the transfer price
Cost price
A price that is equal to the mark-up
Correct answer is B
Cost-plus pricing is a pricing strategy in which the selling price is determined by adding a specific amount markup to a product's unit cost.
Cost plus pricing involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct materialcost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.
N225,000
N236,250
N247,500
N202,500
Correct answer is C
No explanation has been provided for this answer.
N2,400
N3,000
N9,800
N1,400
Correct answer is D
No explanation has been provided for this answer.
An organization which has records of only personal accounts is said to be operating on the basis of
Single entry
Real accounts
Nominal accounts
Double entry
Correct answer is A
A single entry system records a transaction with a single entry and only maintains one side of every transaction.