What is the ledger entry for sale of generator on credit to Patrick?
Credit sales account and debit Patrick’s account
Credit generator account and debit cash account
Credit sales account and debit cash account
Credit generator account and debit Patrick’s account
Correct answer is D
Patrick is receiving and should be debited while generator account is giving
Preliminary expenses is an example of
Fictitious assets
Liquid assets
Wasting assets
Tangible assets
Correct answer is A
Preliminary expenses are just like other asset but are unrealizable.
The process of cost apportionment is carried out so that
Indirect costs may be controlled
Cost units could gather overhead as they pass through cost centres
Variable costs may be controlled
Common costs are shared among cost centres
Correct answer is D
Cost apportionment is the sharing of commonly incurred expenses proportionately where two or more cost centres are involved
Appreciation
Amortization
Provisions
Depreciation
Correct answer is D
Depreciation is the reduction in the service potential of an asset as a result of wear and tear.
N1,605
N875
N2,450
N1,300
Correct answer is B
The imprest system is a form of financial accounting system. The most common imprest system is the petty cash system. The base characteristic of an imprestsystem is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.
450 + 250 +175 = 875
the imprest will be reimbursed with the amount that was spent which is 875