Which of these is the subsidiary book for return inwards?
Sales day book
Sales return journal
Purchases day journal
Cash book
Correct answer is B
Sales return journal otherwise called return inward book is meant for recording of all good returned by customer
In the period of rising prices, which method of stock valuation is most appropriate?
Last in First Out
Weighted average
First in First Out
Simple average
Correct answer is A
Last in first out:when price rise it results to lower bet income because the leftover inventory might be extremely old and perhaps obsolete
Which fund is used to meet unforeseen or urgent expenditure?
General reserve fund
Consolidated Reserve Fund
Contingencies fund
Special fund
Correct answer is C
Contingencies fund: if there is an urgent and unforeseen need for expenditure for which no other provision exist, such expenses shall be deducted from the contingencies fund
₦110,000
₦80,000
₦90,000
₦30,000
Correct answer is D
\(\begin{array}{c|c} \text{Assets} & N \\ \hline \text{Plant and Machinery} & 190 000 \\ \hline \text{Motor Vehicle} & 170 000 \\ \hline \text{Stock} & 60 000 \\ \hline & 420,000 \\ \hline \text{Less Liabilities} & 50 000 \\ \hline \text{Value / Net worth of the business} & 370,000\end{array}\)
Purchase Consideration less worth of the business
400,000 - N 370,000
= N30,000
Goodwill is an asset that can not be seen or touched. It is referred to as intangible asset.
Goodwill is generated as may be the good name ot the business, confident of the customers an the product of the business. It is quantifiable by the management an monetary terms.
₦4,000
₦4,500
₦5,000
₦1,400
Correct answer is D
No explanation has been provided for this answer.