Which of the following is a component of prime cost?
Depreciation
Royalty
Factory rent
Factory electricity
Correct answer is D
Direct materials are one of the main components of prime costs and include raw materials and supplies that are consumed directly during the production of goods. In production, electricity is required to aid the process. This makes it a part of the prime cost
Ordinary partner
Limited partner
Dormant partner
Nominal partner
Correct answer is C
Dormant partner is a partner who contributes capital and takes no share in the active business of a company or partnership, but is entitled to a share of the profits, and subject to a share in losses; They are also called sleeping partner or silent partner.
Which of the following is not prepared by a partnership?
Trading account
Profit and loss account
Income and expenditure account
Profit and loss appropriation account
Correct answer is C
The income and expenditure account is an account prepared by non-trading concerns to ascertain surplus or deficit of income over expenditures for a particular period. Partneship business is a profit oriented business
The name given to a budget in public service accounting is
Vote
Subvention
General order
Estimate
Correct answer is D
No explanation has been provided for this answer.
Branch stock account is used to determine the
Net value of goods sent to branch
Gross profit of the branch
Branch credit sales
Branch net profit or loss
Correct answer is D
This account records the transactions in regard to the stock in the branch at invoice price. The debit side of this account records the inflow of stock into the branch and credit side records its outflow from the branch.
The primary objectives of branch accounting are better accountability and control since profitability and efficiency can be closely tracked for individual locations. The head office is able to ascertain the profits and losses of each branch and compare results.