Use the following information to answer the question
|
$ |
|
|
Trade creditors (31/12/2020) |
4,000 |
| Paid for purchases in 2021: Cheques | 110,000 |
| Carriage inwards | 1,000 |
| Trade creditors (31/12/2021) | 6,000 |
The balance c/d on trade creditors will be recorded in the balance sheet as
current asset
short-term liability
long-term liability
fixed asset
Correct answer is B
The balance c/d on trade creditors will be recorded in the balance sheet as a "short-term liability."
Trade creditors represent amounts owed by a business to its suppliers for goods or services that have been purchased on credit. These amounts are typically expected to be paid within a short period, usually within a year. As a result, trade creditors are classified as short-term liabilities on the balance sheet.
In the given information, the trade creditors balance on December 31, 2021, is $6,000. This represents the amount that the business still owes to its suppliers at the end of the year. Since it is an amount payable in the short term, it will be recorded as a short-term liability on the balance sheet.
Use the following information to answer the question
| $ | |
|
Trade creditors (31/12/2020) |
4,000 |
| Paid for purchases in 2021: Cheques | 110,000 |
| Carriage inwards | 1,000 |
| Trade creditors (31/12/2021) | 6,000 |
The total purchase in 2021 is
$121,000
$113,000
$117,000
$111,000
Correct answer is D
To determine the total purchase in 2021, we need to sum up the amounts paid for purchases in 2021 and the carriage inwards.
The amounts are as follows:
Paid for purchases in 2021 (cheques): $110,000
Carriage inwards: $1,000
Adding these two amounts together gives us:
$110,000 + $1,000 = $111,000
Therefore, the total purchase in 2021 is $111,000.
Which of the following items is classified as capital expenditure in public sector accounting?
Training and conference cost
Construction works's cost
Wages and salaries
Financial charges
Correct answer is B
Capital expenditure are expenditure incurred on long term project. They usually add to the value of the assets. They are normally paid from development fund.
A reason a business is not able to keep full set of accounting records is that
the business does not make profit
double entry is expensive to maintain
the business is not a trading concern
double entry shows the true profit
Correct answer is B
The double entry system is comparatively an expensive way of maintaining the financial accounts. The accountants may charge a handsome amount as fees. Maintaining incomplete records consumes less time.
The source of funds available to a local government/district assembly includes
common fund allocation
none of the above
excise duties
road tolls
Correct answer is B
The sources of funds available to a local government/district assembly can vary depending on the specific jurisdiction and country. However, among the options provided, the following are commonly recognized as potential sources of funds for local governments/district assemblies:
Common fund allocation: Many countries allocate a portion of national revenue or taxes to local governments/district assemblies through a common fund. This fund ensures that local governments have a guaranteed source of funds to carry out their responsibilities and provide essential services to their communities.
Excise duties: Excise duties are taxes imposed on specific goods or services within a country. Local governments may receive a portion of excise duty revenues collected within their jurisdiction as a source of funding for their activities.
Road tolls: Local governments may generate revenue by implementing tolls on specific roads or highways within their jurisdiction. The funds collected from road tolls can be used to finance road maintenance, infrastructure development, and other related projects.
Foreign loans: Local governments/district assemblies may also have the option to seek external funding through foreign loans. This involves borrowing money from international financial institutions or foreign governments to finance specific projects or initiatives.