Principles of Accounting | Study Mode

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Question 41
A
Over all performance of a division
B
Cost per unit of a profit
C
Price per unit of a product
D
Over all performance of a firm
Explanation

Departmental accounting is prepared to ensure that the results of each individual department is known


Correct option: A
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Question 42
A
It is a norm
B
to ensure new partner also have a stake in the business
C
the firm into which he is entering already has some goodwill in the market
D
to purchase the business
Explanation

Goodwill is being paid by a new partner because the partnership he is entering into already has goodwill in the market as well as to pay for the portion sacrificed by existing partners in form to their profit to admit the new partner.


Correct option: C
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Question 43
A
?700
B
?1050
C
?1750
D
?3500
Explanation

Jewelry 3/10 x 3500 = 1050

Hairdressing 2/10 x 3500 = 700

Clothing 5/10 x 3500 = 1750


Correct option: C
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Question 44
A
No of employees
B
stock value
C
space occupied
D
wages
Explanation

Indirect expenses are allocated among departments in order to ascertain the profits or loss made by each department


Correct option: C
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Question 45
A

#511.25 debit

B

#500.00 credit

C

#349.75 debit

D

#340.00 credit

Explanation

The amount withdrawn by the partners for their personal use out of the firm is known as drawings. Interest are charged on this drawings


Correct option: C
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Question 46
A
Factory overhead
B
purchases
C
material cost
D
wages
Explanation

Conversion costs are costs required to convert raw materials into finished goods

Formula for conversion cost= direct labor+ factory overheads


Correct option: A
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Question 47
A
36,925Cr
B
40,000Cr
C
50,000Dr
D
36,295Dr
Explanation

Drawings: 3000 + 2000 + 4000 + 1500 + 2500 = 13000


Correct option: A
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Question 48
A
Debit profit and loss account and credit head office account
B
Debit head office account and credit cash
C
Credit cash and debit profit and loss account
D
Credit profit and loss account and debit head office account
Explanation

The head office maintains a book, (branch account) more or less like other personal accounts, so that any expenses incurred on behalf of the branch will also be debited to the branch account. Similarly, in the branch books, there will be head office accounts


Correct option: A
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Question 49
A
N10,740
B
N11,860
C
N16,380
D
N17,500
Explanation

BANK RECONCILIATION STATEMENT

? ?

Balance as per cashbook

13560

Unpresented cheques

5120

Dividend received

2000 7120

Uncredited cheque

2300

Bank charges

280

Standing order

600 3180

Balance as per bank statement

17500

Correct option: A
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Question 50
A
FIFO
B
LIFO
C
Average cost method
D
LILA
Explanation

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


Correct option: D

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