N29,200
N17,800
N32,800
N19,600
Correct answer is C
opening balance= N15,200
cash receipt = N36,000
closing balance= N18,400
N15,200 + N36,000 = N51,200
N51,200 - N18,400 = N32,800 (cash paid out)
Subscription received during the year N30,000. Subscription owed last year N4,000. subscription received for next year N6,000.
use the details above to answer the following question.
What is the subscription to be charged to income and expenditure account?
N20,000
N30,000
N34,000
N36,000
Correct answer is D
An income and expenditure account is a record showing debits and credits for an organization within a particular time period. Income and expenditure accounts are also referred to as profit and loss accounts. Generally, these accounts are credited with debits and credits, whether paid or not.
the subscription to be charged to income and expenditure account = subscription for the year N30,000 + N6,000 subscrition for next year. ie, N36,000
Subscription received during the year N30,000. Subscription owed last year N4,000. subscription received for next year N6,000.
use the details above to answer the following question.
The N6,000 subscription received is?
Capital
Fixed asset
Current liability
Current asset
Correct answer is C
A subscription is a relatively new business model by which a customer agrees to pay the company for products or services throughout a specified time-period. For example, the customer may agree to purchase a one-year subscription to a magazine which he receives on a regular basis (monthly, weekly, etc.).
Current liabilities are a company's debts or obligations that are due within one year or within a normal operating cycle. While current asset refers to cash and other assets that are expected to be converted to cash within a year. In this case, the company is owing a subscriber for a good or service that has already been paid for (by the subscriber), but not yet delivered by the company. on the part of the company's, it will be considered a liability due within a year and on the subscriber' part, an asset due within a year.
N14,000
N24,000
N8,000
N42,000
Correct answer is A
income= N30,000 donation
expenditure= N10,000 rent + N6,000 entertainment= N16,000
income - expenditure = N30,000 - N16,000 = N14,000
The main difference between the ordinary and preference shareholders is that
The former have voting rights while the latter do not
In the case of winding up, the former are paid first before the latter
The latter are not members of the company while the former are
The former receives dividends while the latter do not
Correct answer is A
An ordinary share defines a single unit of equity ownership of a corporation, where the holders of the ordinary shares receive the right to cast a vote in decisions involving important corporate matters. Such votes are available to each ordinary shareholder in correspondence to the number of ordinary shares held within the company. Ordinary shareholders are the last to receive dividends, and are only entitled to funds which remain after dividends on preferred shares are paid. Ordinary share holders may not receive dividend payments every year, and payments to ordinary shareholders depend on reinvestment decisions made by the company directors. In an event of the company facing liquidation, the ordinary shareholders will be the last to receive their share of funds, after the creditors and preference shareholders are paid. As such ordinary shares are riskier than bonds or preference shares. Ordinary shares are also referred to as ‘common stock’.
Preference shares are offered preference in relation to ordinary shares, where the preference shareholder receives dividends before ordinary shareholders are paid out. Preference shareholders are paid a fixed dividend and have the first claim on the assets and earnings. As such, preference shareholders receive their share of the firm’s residual value before ordinary shareholders in the event of liquidation. Preference shareholders do not have voting rights.