The amount of money taken out of the business by the owner
The cash in the business bank account
The difference between sales and cost of sales
Sales revenue less cost of sales expenses
Correct answer is D
Net profit is the actual profit after working expenses not included in the calculation of gross profit have been paid.
i, ii and iii only
i, iii and iv only
ii, iii and iv only
iii and iv only
Correct answer is D
Examples of nominal accounts include purchase account, sales account, salary A/C, commission A/C etc. The nominal account is income statement account(expenses, income, loss, profit) and is also known as temporary account unlike balance sheet account ( Asset, Liability, owner's equity) which are permanent account.
The purchase of ten ceiling fans by Akpan Electronic Enterprises will be recorded as
An acquisition of fixed asset
An expense in its general office expense account
Part of capital in the capital account
An acquisition of stock
Correct answer is D
Since the shop is involved in the sales of electronics and fans are electronics, the purchase is therefore considered stock which has been purchased by Akpan electronic enterprise for resale.
The total value received by company as consideration for shares issued constitutes
Paid-up capital
Authorised capital
Working capital
Capital employed
Correct answer is A
No explanation has been provided for this answer.
Which of the following is entered in the general journal?
Purchase of goods
Sale of goods on credit
Returns inward
Acquisition of fixed assets
Correct answer is D
The general ledger should include the date, description and balance or total amount for each account. It is usually divided into at least seven main categories. These categories generally include assets, liabilities, owner's equity, revenue, expenses, gains and losses.