# Principles of Accounting (2017 | Study Mode

Question 21
A
invoice
B
cheque book
C
credit note
D
pay-in-slip
##### Explanation
Pay-in-slip:this is in form of a slip designed with the name of the bank on top that has dates amounts in figure and word, column for the denomination of money paid in signature bank teller, stamp to prove the money is deposited into the bank

Question 22
A
I,II and IV
B
II,III and IV
C
III and IV
D
I,II and III
##### Explanation
The receipts and payment account is one of the account of a non-profit oriented organization that performs the same functions as cash account in a profit oriented organization
all forms of payment since cash is involved will be recorded and also performs the same functions as the cashbook does for profit oriented organization

Question 23
A
Sales
B
issue
C
purchases
D
requisition
##### Explanation

Explanation not provided, please join discuss, your contributions are welcomed

Question 24
A
it enable the organization to determine the branch that is making either profit or loss
B
it allows proper control over the branch by the head office
C
it assist the organization to determine the performance of a branch manager
D
it allows fraud and wastage of resources
##### Explanation
The activities and resources of branches is strictly monitored by the head office and each branch is supplied according to its need so it will be difficult to commit fraud or waste any resources

Question 25
A
increased financial activities
B
government intervention
C
credit as a factor in business
D
Payment for goods in cash
##### Explanation

Explanation not provided, please join discuss, your contributions are welcomed

Question 26
A
Income and expenditure account
B
profit and loss account
C
receipts and payment account
D
Non profit account
##### Explanation
Income and expenditure : This is the type of account that operate same features as the profit and loss account it takes in consideration all arrears and prepayments

Question 27
A

12,000

B

15,000

C

16,000

D

9,000

##### Explanation

Before calculating the discount received in Dep. B

We need to calculate the percentage of purchases for Dep B

Out of the total purchases

Dep. A purchases 150,000

Dep. B purchases 250,000

400,000 - Total purchases

therefore; $$\frac{250,000 \times 24,000}{\text{(Total discount received)}}$$ x 400,000

= 15,000

Question 28
A
it serves-as a control during inflation
B
it is calculated at the end of the year
C
it is progressive in nature
D
its flow of cost is in sequence with the flow of stock.
##### Explanation
The first in first out(FIFO) method of stock valuation, major advantage 1 it is very easy to apply 2 no manipulation of income is possible 3 the balance sheet amount for inventory is likely to approximate the current market value

its flow of cost is in sequence with the flow of stock: since the first stock will be considered for sale before other stock. the cost is always in sequence with the flow of stock because it correspondence with the normal physical flow of goods

Question 29
A
Managers
B
Customers
C
Suppliers
D
Staff of the company
##### Explanation
Customer: customers are the one that enjoys discount allowed. It is allowed to them by the suppliers. it can be in cash or trade

Question 30
A

5,000

B

9,375

C

5,625

D

8,000

##### Explanation

To determine the discount allowed by Department A, the percentage of sales by Department A need to be calculated

Dep A 250,000

Dep B $$\frac{150,000}{400,000}$$

% of Dep A = $$\frac{250,000}{400000}$$ X 100

= 62.5%

Discount allowed in Dep A = $$\frac{62.5}{100}$$ x 250,000

= 9,375

= 9,375

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