If rent account is debited instead of rate account, the error committed is that of;
Omission
Commission
Principle
Original entry
Correct answer is A
Error of omission: An error that occurs when action has not been taken or when something has been left out.
The loss made by a non profit making organization is called
Deficit
Surplus
Discount
Shortage
Correct answer is A
A deficit occurs for a nonprofit organization whenever its expenses exceed its revenue . deficit in a non for profit making organization stands for loss and it is the excess of expenses over bar profit and other income.
An advantage of using accounting ratios is that
Can be easily calculated
Show errors and frauds
Facilitate decision making
Are stipulated by law
Correct answer is C
Accounting ratios helps management in taking decision the totality of the activities in an organization
If sales return is understated, it implies that ------------------------------ is overstated
Return inward
Sales figure
Cost of sales
Return outward
Correct answer is B
This is so because returns inwards are deducted from sales to ascertain the actual sales made after subtracting defected goods
Use the following information to answer this question.
N11,700
N26,700
N88,000
N85,000
Correct answer is C
Creditors plus subscription in advance 85000 + 3000 = 88,000