The instrument used in analysis and interpretation of financial statement is the
Accounting ratios
Income and expenditure extract
Balance sheet extract
Found accounting
Correct answer is A
Accounting ratio is the comparison of two or more financial data which are used for analyzing the financial statements of companies. It is an effective tool used by the shareholders, creditors and all kinds of stakeholders to understand the profitability, strength and financial status of companies.
Return on capital employed
Gross profit margin
Net profit margin
Return on equity
Correct answer is A
Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed by comparing net operating profit to capital employed.
One of the objectives of accounting is that it can be used for
Business decision making
Due process in business
Motivating employees
Determining the work force
Correct answer is A
Objectives of accounting in any business are; systematically record transactions, sort and analyzing them, prepare financial statements, assessing the financial position, and aid in decision making with financial data and information about the business.
N60,700
N23,500
N60,500
N82,500
Correct answer is C
Sales - Cost of Goods Sold = Gross Profit
COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.
COGS = 2,500, + 120,000 - 3,000 = 119,500
gross profit for K = 180,000 - 119,500 = 60,500
The major advantage of the journal proper is that it
Helps in the preparation of the balance sheet
Prevents fraud and theft of item of the business
Serves as a book of instruction to the bookkeeper
Help the banking industry to be efficient
Correct answer is B
The advantages of using a journal in the recording process is, it discloses in one place the complete effects of a transaction, it provides a chronological record of transactions, & it helps to prevent or locate errors because the debit and credit amounts for each entry can be easily compared.