In sales ledger control account, returns inwards is usually
Debited and debtors credited
Credited and sales returns debited
Debited and cash credited
Credited and bank credited
Correct answer is B
Remember sales ledger control accounts keeps count of all sales made on credit. If a customer returns goods that were sold on credit, we debit sales returns account and credit returns inwards
The LIFO method has an advantage over FIFO in that stocks are valued at
Previous prices
Current prices
Average rates
Flat rates
Correct answer is B
LIFO is used by firms to lower their tax liabilities at the expense of an outdated inventory value as reflected on the balance sheet.
#1,198.00
#1,218.38
#1,257.67
#1,408.00
Correct answer is C
| date | quantity | unit cost | Dispatch quantity | Balance |
| 1 | 100 | 10.00 | 100 | |
| 3 | 60 | 11.50 | 60 | |
| 15 | 85 | 75 | ||
| 15 | 180 | 12.80 | 255 | |
| 22 | 145 | 110 | ||
| 340 | 34.3 | 230 | 110 |
(34.3 / 3) x 110 = 1257.67
The value of stock is gotten by dividing the total unit cost by the number of times stock was purchased and multiplying it by the balance of stock at the end of the month or period.
#862.50
#840.00
#806.25
#750.00
Correct answer is D
No explanation has been provided for this answer.
Which of the following is an item of special assets?
Fixed assets
Current assets
Trademark
Gratuity
Correct answer is C
Special assets are typically private business interests, properties or natural resources that can be difficult to convert directly to more liquid investments, like cash. They may also be called illiquid assets. Example are trademarks, goodwill