The primary classification of government expenditure is based on
Programs
Fund
Activity
Project
Correct answer is B
No explanation has been provided for this answer.
When the purchase consideration exceeds the value of business, the difference is
Profit
Discount
Goodwill
Reserve
Correct answer is C
Goodwill is an intangible asset associated with the purchase of one company by another. It is a company's value that exceeds its assets minus its liabilities.
The accounting ratio used to measure the average number of days for which suppliers remain unpaid is
Stock turnover
Creditor's payment period
Debtors collection period
Return on capital employed
Correct answer is B
The Creditor (or payables) days number is a similar ratio to debtor days and it gives an insight into whether a business is taking full advantage of trade credit available to it. Creditor days estimates the average time it takes a business to settle its debts with trade suppliers.
Shares issued below nominal value are referred to as shares at
Premium
Discount
Face value
Cumulative value
Correct answer is B
Issue of Shares at Discount Definition: When a share is issued by the company at a price that is less than the face value of the share, the share is said to be issued at a discount.
When shares are issued above their nominal value, the excess above the nominal value is
Credited to profit and loss account
Debited to share premium account
Credited to share capital account
Credited to share premium account
Correct answer is B
A company issues its shares at a premium when the price at which it sells the shares is higher than their par value. The amount of the premium is the difference between the par value and the selling price and will be debited to the share premium account.