Accounting

Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?

A. Selling price B. Fixed percentage on cost C. Cost price D. Invoice price Correct Answer: Option C - Cost…

5 years ago

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a?

A. Bonus B. Good will C. Premium D. Commission Correct Answer: Option B - Good will Explanation Goodwill is the…

5 years ago

Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including ________?

A. Partners salaries B. Interest on capital C. Interest on loans D. Partners drawings Correct Answer: Option C - Interest…

5 years ago

In reconciling the branch and head office accounts; remittance in transit in the branch books is treated as a ________?

A. Debit entry A. Contra entry C. Credit entry D. Reversal entry Correct Answer: Option A - Debit entry Explanation…

5 years ago

Which of the following is not a type of branch?

A. Dependent branch B. foreign branch C. independent branch D. single branch Correct Answer: Option D - single branch

5 years ago

Why are adjustments in the profit and loss account necessary?

A. To cover some expenses of the following year B. To show the provisions made during the year C. To…

5 years ago

Calls in advance are treated in the balance sheet as _____?

A. Current asset B. Fixed asset C. Current liability D. Fixed liability Correct Answer: Option C - Current liability Explanation…

5 years ago

Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?

Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and…

5 years ago

Gross profit in the branch adjustment account is transferred to the branch _______?

A. Income and expenditure account B. profit and loss account C. receipt and payment account D. trading account Correct Answer:…

5 years ago

If the purchase price exceeds the net assets of a company; the excess amount is debited to _______?

A. Cash account B. purchase account C. goodwill account D. sales account Correct Answer: Option C - goodwill account Explanation…

5 years ago