Items shown in the balance sheet as asset includes
Debit balance on drawings account
Debit balance on a customer's account
Credit balance on the capital's account
Credit balance on a supplier's account
Correct answer is B
The items which are generally present in all the balance sheet includes assets like cash, inventory, account receivable, investments, prepaid expenses and fixed assets.
Subscription in advance is treated in the balance sheet under
Long-term liabilities
Current liabilities
Accumulated fund
Current assets
Correct answer is B
Subscription in advance is the sum of money prepaid by the members of club representing their dues for next year. It is treated as a liability in the balance sheet.
A set of rules and procedures guiding the operations of a partnership is called partnership
Code
Business
Seal
Deed
Correct answer is D
Partnership deed is a document drawn up by partners, which contains the rules and regulations guiding the business. It is also a document, which will clarify the respective positions and duties of the partners in a business.
Use the following information to answer below
| GH⊄ | |
| Sales | 200000 |
| Purchase | 170000 |
| Opening stock | 40000 |
| Closing stock | 50000 |
Stock turnover ratio is
3.78 times
3.56 times
4 times
3.2 times
Correct answer is B
Stock turnover = Cost of goods sold/Average stock
where Average stock = Opening stock + Closing stock /2
160,000 / 40,000 +50,000 /2
= 160,000 /45,000
= 3.555
≃ 3.56 times
Use the following information to answer below
| GH⊄ | |
| Sales | 200000 |
| Purchase | 170000 |
| Opening stock | 40000 |
| Closing stock | 50000 |
The gross profit percentage is
10%
20%
25%
15%
Correct answer is B
Gross profit percentage = Gross profit/Sales x 100
Cost of goods sold = 40,000 + 170,000 - 50,000
= 160,000
Gross profit = 200,000 - 160,000
= 40,000
Gross profit % = 40,000/200,000 x 100
= 20%