Transactions are recorded or posted to the ledger in line with
Accounting Concept
Source document
Double Entry Principle
Data collection
Correct answer is C
The main principle of double-entry system is that for every debit there is a corresponding credit for an equal amount of money and for every credit there is a corresponding debit for an equal amount of money; i.e. for every transaction one account is debited for, the amount of transaction and the other account is also credited.
N210,000
N844,400
N840,000
N500,000
Correct answer is B
1/20 * 844400 = 4220
The basic role of accounting is to?
Detect fraud
Attest to financial statements
Measure performance
Protect shareholders
Correct answer is C
The role of accounting in business is to help internal and external stakeholders make better business decisions by providing them with financial information. This means that., the purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it.
N6,120,000
N8,280,000
N6,120,300
N8,820,000
Correct answer is A
What is 'Net Debt'?. Net debt shows a business's overall financial situation by subtracting the total value of its cash, cash equivalents, and other liquid assets, a process called netting. All the information necessary to determine a company's net debt can be found on its balance sheet.
A bad debt is a monetary amount owed to a creditor that is unlikely to be paid and, or which the creditor is not willing to take action to collect for various reasons, often due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency.
net debtors = 7,200,000 (after all necessary deductions have been made)
bad debts = 15% ( an amount to be deducted from the total of all the debts owed to the company)
The question says, ''the total balance of debtors before adjustment'' Remember net debtors is gotten after necessary deductions are made. This means that, the 15% provided as bad debts to be written off by the company, had already been deducted as well. to get the initial balance before the deductions, we simply get 15% of 7,200,000 and add it to the net debtors. Hence we have;
15/100 * 7,200,000 = N1,080,000
7,200,000 + 1,080,000 = N8,280,000
The accumulated fund of a non-trading concern can equally be referred to as?
Members equity
Share capital
General fund
Surplus fund
Correct answer is C
n accumulated fund is the capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures and there is a budgetary surplus. Capital fund (also known as general fund and accumulated fund) is a balance sheet item which represents the surplus of assets over liabilities of a non-trading concerns. In other words, we can say that the capital fund of non-profit organizations is equivalent to the capital of for-profit organizations. It increases as a result of surplus and decreases as a result of deficit computed by preparing an income and expenditure account.