Bonus
Commission
Premium
Goodwill
Correct answer is D
Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable.
i. Direct materials
ii.Direct labour
iii.Direct expenses
iv. Factory expenses
Prime cost consist of
i, ii and iii
i, ii and iv
i, iii and iv
ii, iii and iv
Correct answer is A
Prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs. Direct material and direct labor costs are prime cost because they are the main incremental costs of a product.
Which of the following expenses relates to the profit and loss account of a manufacturing firm?
Direct materials
Direct labour
Administrative overhead
Work-in-progress
Correct answer is C
Administrative overhead is those costs not involved in the development or production of goods or services. This is essentially all overhead that is not included in manufacturing overhead. Examples of administrative overhead costs are the costs of: Front office and sales salaries, wages, and commissions. Office supplies
Which of the following is accounted for in receipts and payment account?
Subscriptions recieved in advance
Subscriptions due not yet recieved
Accrued expenses on annual dances
Depreciation of the club house
Correct answer is A
A receipts and payments account is a summary of actual cash receipts and payments extracted from the cash book over a certain period. All cash received and paid during the period whether capital or revenue is included in this account. It contains Subscriptions received in advance.
In manufacturing account, the work-in-progress at the end of the year is
Deducted from the cost of goods completed during this year
Added to the cost of goods completed
Stated in the profit and loss account
Stated in the prime cost section
Correct answer is A
Work in progress for the year is gotten by = WIP beginning balance + manufacturing costs - the cost of goods completed.