The user of accounting information who is responsible for overall performance of the business is the
Customer
Employee
Shareholder
Director
Correct answer is D
Directors are agents to the company. They are expected to manage the business on behave of their principal, the shareholders. As a result, they are accountable to them. To achieve accountability, the directors ensure that the business earns a profit.
One of the items on the credit column of a trial balance is
Returns outwards
Carriage outwards
Returns inwards
Carriage inwards
Correct answer is A
The rule of a trial balance is :
- debit all expenses and assets
- credit all income and gain and liabilities
Returns outwards is the total value of goods returned to suppliers out of the goods bought and it is also known as purchases returns. Therefore, returns outwards will be credited to the trial balance.
Use of following information to answer questions below
| D | |
| Motor vehicle | 500000 |
| Stock | 35000 |
| Debtors | 18000 |
| Cash | 12850 |
| Bank overdraft | 280000 |
| Creditors | 21500 |
The total current liability is
D 301,500
D 258,500
D 264,350
D 280,000
Correct answer is A
Total current liability = 280,000 + 21,500
= 301,500
Use of following information to answer questions below
| D | |
| Motor vehicle | 500000 |
| Stock | 35000 |
| Debtors | 18000 |
| Cash | 12850 |
| Bank overdraft | 280000 |
| Creditors | 21500 |
The total current asset is
D 65,850
D 367,350
D 345,850
D 87,850
Correct answer is A
Total current asset = 35,000 + 18,000 + 12,850
= 65,850
Use of following information to answer questions below
| D | |
|
Motor vehicle |
500000 |
|
Stock |
35000 |
|
Debtors |
18000 |
|
Cash |
12850 |
|
Bank overdraft |
280000 |
|
Creditors |
21500 |
The capital is
D 867,350
D 544,350
D 264,350
D 832,350
Correct answer is C
Capital = Total Asset - Total Liabilities
= ( 500,000 + 35,000 + 18,000 +12,850) - (280,000 + 21,500)
= 264,350