Which of the following is not an administrative expenses in a manufacturing organization?
Discounts allowed
Office electricity
Stationery
Insurance
Correct answer is C
Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales. stationaries aren't administrative expense.
₦9,000
₦8,500
₦8,000
₦6,500
Correct answer is C
No explanation has been provided for this answer.
The amount of money taken out of the business by the owner
The cash in the business bank account
The difference between sales and cost of sales
Sales revenue less cost of sales expenses
Correct answer is D
Net profit is the actual profit after working expenses not included in the calculation of gross profit have been paid.
i, ii and iii only
i, iii and iv only
ii, iii and iv only
iii and iv only
Correct answer is D
Examples of nominal accounts include purchase account, sales account, salary A/C, commission A/C etc. The nominal account is income statement account(expenses, income, loss, profit) and is also known as temporary account unlike balance sheet account ( Asset, Liability, owner's equity) which are permanent account.
The purchase of ten ceiling fans by Akpan Electronic Enterprises will be recorded as
An acquisition of fixed asset
An expense in its general office expense account
Part of capital in the capital account
An acquisition of stock
Correct answer is D
Since the shop is involved in the sales of electronics and fans are electronics, the purchase is therefore considered stock which has been purchased by Akpan electronic enterprise for resale.