All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
business accounting
Questions and Answers of
Business Accounting
The annual final accounts of businesses are normally prepared on the assumption that the business is a going concern.Required:Explain and give a simple illustration of(a) The effect of this
One of the well known accounting concepts is that of materiality.Required:(a) Explain what is meant by this concept.(b) State and explain three types of situation to which this concept might be
A firm produces a standard manufactured product. The stages of the production and sale of the product may be summarised as follows:Required:(a) What general rule do accountants apply when deciding
State three classes of people, other than managers and owners, who are likely to need to use financial accounting information. Discuss whether you think their requirements are compatible.
(a) In accounting practice a distinction is drawn between the terms ‘reserves’ and ‘provisions’ and between ‘accrued expenses’ and ‘creditors’.Required:Briefly define each of the four
Bradwich plc is a medium-sized engineering company whose shares are listed on a major Stock Exchange.It has recently applied to its bankers for a 7-year loan of £500,000 to finance a modernisation
Explain what you understand by the accounting term ‘capital gearing’, showing clearly the benefits of, and the potential problems associated with high gearing.
What benefits can result through the use of ratios and what limitations should be imposed on any conclusions drawn from their use?
Which of the following is not an asset?(A) Buildings(B) Cash balance(C) Debtors(D) Loan from K Harris
Which of the following is a liability?(A) Machinery(B) Creditors for goods(C) Motor Vehicles(D) Cash at Bank
What are the two main objectives of budgeting?
What role do management accountants play in the budgetary process?
Which of the following best describes the meaning of ‘Purchases’?(A) Items bought(B) Goods bought on credit(C) Goods bought for resale(D) Goods paid for
Which of the following should not be called ‘Sales’?(A) Office fixtures sold(B) Goods sold on credit(C) Goods sold for cash(D) Sale of item previously included in ‘Purchases’
What makes information useful?
Which of the following statements is incorrect?(A) Assets – Capital = Liabilities(B) Liabilities + Capital = Assets(C) Liabilities + Assets = Capital(D) Assets – Liabilities = Capital
When the final accounts are prepared, the Bad Debts Account is closed by a transfer to the(A) Balance Sheet(B) Profit and Loss Account(C) Trading Account(D) Provision for Doubtful Debts Account.
A credit balance brought down on a Rent Account means(A) We owe that rent at that date(B) We have paid that rent in advance at that date(C) We have paid too much rent(D) We have paid too little in
A debit balance brought down on a Packing Materials Account means(A) We owe for packing materials(B) We are owed for packing materials(C) We have lost money on packing materials(D) We have a stock of
If we take goods for own use we should(A) Debit Drawings Account: Credit Purchases Account(B) Debit Purchases Account: Credit Drawings Account(C) Debit Drawings Account: Credit Stock Account(D) Debit
Capital Expenditure is(A) The extra capital paid in by the proprietor(B) The costs of running the business on a day-to-day basis(C) Money spent on buying fixed assets or adding value to them(D) Money
In the business of C Sangster, who owns a clothing store, which of the following are Capital Expenditure?(i) Shop fixtures bought(ii) Wages of assistants(iii) New van bought(iv) Petrol for van.(A)
A Bank Reconciliation Statement is a statement(A) Sent by the bank when the account is overdrawn(B) Drawn up by us to verify our cash book balance with the bank statement balance(C) Drawn up by the
What should happen if the balance on a Suspense Account is of a material amount?(A) Should be written off to the balance sheet(B) Carry forward the balance to the next period(C) Find the error(s)
A Provision for Doubtful Debts is created(A) When debtors become bankrupt(B) When debtors cease to be in business(C) To provide for possible bad debts(D) To write off bad debts.
Given opening debtors of £11,500, Sales £48,000 and receipts from debtors £45,000, the closing debtors should total (A) £8,500(B) £14,500(C) £83,500(D) £18,500
In a Sales Ledger Control Account the Bad Debts written off should be shown in the account(A) As a debit(B) As a credit(C) Both as a debit and as a credit(D) As a balance carried down
Given cost of goods sold £16,000 and margin of 20 per cent, then sales figure is(A) £20,160(B) £13,600(C) £21,000(D) £20,000
If cost price is £90 and selling price is £120, then(i) Mark-up is 25 per cent(ii) Margin is 331/3 per cent(iii) Margin is 25 per cent(iv) Mark-up is 331/3 per cent(A) (i) and (ii)(B) (i) and
A Receipts and Payments Account is one(A) Which is accompanied by a balance sheet(B) In which the profit is calculated(C) In which the opening and closing cash balances are shown(D) In which the
Given opening capital of £16,500, closing capital as £11,350 and drawings were £3,300, then(A) Loss for the year was £1,850(B) Profit for the year was £1,850(C) Loss for the year was £8,450(D)
If creditors at 1 January 20X3 were £2,500, creditors at 31 December 20X3 £4,200 and payments to creditors £32,000, then purchases for 20X3 are(A) £30,300(B) £33,700(C) £31,600(D) £38,700
If opening stock is £3,000, closing stock £5,000, sales £40,000 and margin 20 per cent, then stockturn is(A) 8 times(B) 71/2 times(C) 5 times(D) 6 times
Prime cost includes(i) Direct labour(ii) Factory overhead expenses(iii) Raw materials consumed(iv) Direct expenses(A) (i), (ii) and (iii)(B) (ii), (iii) and (iv)(C) (i), (iii) and (iv)(D) (i), (ii)
Which of the following should be charged in the Profit and Loss Account?(A) Office rent(B) Work in progress(C) Direct materials(D) Carriage on raw materials
In the Manufacturing Account is calculated(A) The production costs paid in the year(B) The total cost of goods produced(C) The production cost of goods completed in the period(D) The gross profit on
The recommended method of departmental accounts is(A) To allocate expenses in proportion to sales(B) To charge against each department its controllable costs(C) To allocate expenses in proportion to
Where there is no partnership agreement then profits and losses(A) Must be shared in same proportion as capitals(B) Must be shared equally(C) Must be shared equally after adjusting for interest on
If it is required to maintain fixed capitals then the partners’ shares of profits must be(A) Debited to capital accounts(B) Credited to capital accounts(C) Debited to partners’ current
You are to buy an existing business which has assets valued at buildings £50,000, Motor vehicles £15,000, Fixtures £5,000 and Stock £40,000. You are to pay £140,000 for the business. This means
Assets can be revalued in a partnership change because(A) The law insists upon it(B) It helps prevent injustice to some partners(C) Inflation affects all values(D) The depreciation charged on them
Any loss on revaluation is(A) Credited to old partners in old profit-sharing ratios(B) Credited to new partners in new profit-sharing ratios(C) Debited to old partners in old profit-sharing ratios(D)
In a limited company which of the following are shown in the Appropriation Account?(i) Debenture interest(ii) Proposed dividend(ii) Transfers to reserves(iv) Directors’ remuneration(A) (i) and
The Issued Capital of a company is(A) Always the same as the Authorised Capital(B) The same as Preference Share Capital(C) Equal to the reserves of the company(D) None of the above
A company wishes to pay out all available profits as dividends. Net profit is £26,600. There are 20,000 8% Preference shares of £1 each, and 50,000 Ordinary shares of £1 each. £5,000 is to be
Working Capital is a term meaning(A) The amount of capital invested by the proprietor(B) The excess of the current assets over the current liabilities(C) The capital less drawings(D) The total of
If £500 was shown added to Purchases instead of being added to a fixed asset(A) Net profit only would be understated(B) Net profit only would be overstated(C) It would not affect net profit(D) Both
A cheque paid by you, but not yet passed through the banking system, is(A) A standing order(B) A dishonoured cheque(C) A credit transfer(D) An unpresented cheque.
Which of the following should be entered in the Journal?(i) Payment for cash purchases(ii) Fixtures bought on credit(iii) Credit sale of goods(iv) Sale of surplus machinery.(A) (i) and (iv)(B) (ii)
The Journal is(A) Part of the double entry system(B) A supplement to the Cash Book(C) Not part of the double entry system(D) Used when other journals have been mislaid.
What is the difference between job costing, batch costing, project costing, and process costing?
Owing to staff illnesses, the draft final accounts for the year ended 31 March 20X9 of Messrs Stone, Pebble and Brick, trading in partnership as the Bigtime Building Supply Company, have been
The above partners have always shared profits and losses in the ratio: Pitt 4: Lamb 2: Soul 1. From 1 January the assets were to be revalued as the profit sharing ratios are to be altered soon.The
Fitch and Wall have been in partnership for many years sharing profits and losses in the ratio 5 : 3 respectively. The following was their balance sheet as at 31 December 20X2.On 1 January 20X3, they
The balance sheet of A Barnes and C Darwin at 31 March, 20X8 is as follows:The partners share profits and losses: Barnes three-fifths and Darwin two-fifths. At the date of the above balance sheet, it
From the following information, prepare the manufacturing, trading and profit and loss account for the year ending 31 December 20X6 and the balance sheet as at 31 December 20X6 for the firm of J
The accounting records of the Happy Tickers Sports and Social Club are in a mess. You manage to find the following information to help you prepare the accounts for the year to 31 December
A business both buys loose tools and also makes some itself. The following data is available concerning the years ended 31 December 20X7, 20X8 and 20X9. 20X7 Jan 1 Dec 31 20X8 Dec 31 20X9 Stock of
The Milham Theatre Club has been in existence for a number of years. Members pay an annual subscription of £15 which entitles them to join trips to professional productions at a reduced rate.On 1
The treasurer of the Plumpton Leisure Centre has produced the following receipts and payments account for the year ended 31 December 20X4:Notes:(i ) Refreshment stocks were valued: 31 December 20X3
Read the following and answer the questions below.On 1 January 20X8 The Happy Haddock Angling Club had the following assets:During the year to 31 December 20X8 the Club received and paid the
Although Janet Lambert has run a small business for many years, she has never kept adequate accounting records. However, a need to obtain a bank loan for the expansion of the business has
A summary of the Downline Rugby Club is shown below. From it, and the additional information, you are to construct an income and expenditure account for the year ended 31 December 20X6, and a balance
On 1 May 20X8 Jenny Barnes, who is a retailer, had the following balances in her books: Premises £70,000; Equipment £8,200; Vehicles £5,100; Stock £9,500; Trade debtors £150. Jenny does not keep
A Bell has kept records of his business transactions in a single entry form, but he did not realise that he had to record cash drawings. His bank account for the year 20X8 is as follows:Records of
The following is a summary of Jane’s bank account for the year ended 31 December 20X2:All of the business takings have been paid into the bank with the exception of £17,400. Out of this, Jane has
B Barnes is a dealer who has not kept proper books of account. At 31 October 20X3 his state of affairs was as follows:During the year to 31 October 20X4 his drawings amounted to £32,200. Winnings
The following trading account for the year ended 31 December 20X8 is given to you by M Pole:Pole says that normally he adds 20% to the cost of goods to fix the sales price. However, this year saw
F Lee started in business on 1 January 20X2 with £35,000 in a bank account. Unfortunately he did not keep proper books of account.He is forced to submit a calculation of profit for the year ended 31
The following figures relate to the retail business of A Bell for the month of July 20X3. Goods which are on sale fall into two categories, X and Y.You are to calculate for each category of goods:(a)
R Jack gives you the following information as at 31 March 20X5:Jack’s mark-up is 40% on ‘cost of goods sold’. Her average stock during the year was £17,000. Draw up a trading and profit and
G Flynn is a trader who sells all of his goods at 20% above cost. His books give the following information at 31 December 20X7:You are required to:(a) Ascertain cost of goods sold.(b) Show the value
L Hope’s business has a rate of stock turnover of 8 times per year. Average stock is £16,240. Mark-up is 60%. Expenses are 70% of gross profit.You are to calculate:(a) Cost of goods sold.(b) Gross
The bookkeeper of a firm failed to agree the trial balance at 30 June, the end of the financial year. She opened a suspense account into which she entered the amount she was out of balance and
Journalise the matters arising from the following items in the books of B Danby, including the narrative in each case. Note that for this purpose cash and bank items may be journalised. In the case
At the end of a financial year, the trial balance of a small company failed to agree and the difference was entered in a suspense account. Subsequently, the following errors were discovered:(i) The
The following points were discovered in the books of a small building firm before the closing entries had been made. Draft financial statements had already been prepared and showed a net profit of
The following is a trial balance which has been incorrectly drawn up:In addition to the mistakes evident above, the following errors were also discovered:1. A payment of £315 made to a creditor had
Chi Knitwear Ltd is an old-fashioned firm with a handwritten set of books. A trial balance is extracted at the end of each month, and a profit and loss account and balance sheet are computed. This
The trial balance as at 30 April 20X7 of Timber Products Limited was balanced by the inclusion of the following debit balance:Difference on trial balance suspense account £2,513.Subsequent
Study the following and answer the questions below. The trial balance of Mary Harris (Gowns) as at 31 December 20X8 showed a difference which was posted to a suspense account. Draft final accounts
Show how each of the following errors would affect trial balance agreement:(i) Computer repairs £184 was debited to the computer account.(ii) £819 discounts received credited to discounts allowed
You have extracted a trial balance and drawn up accounts for the year ended 31 December 20X7. There was a shortage of £78 on the credit side of the trial balance, a suspense account being opened for
Thomas Smith, a retail trader, has very limited accounting knowledge. In the absence of his accounting technician, he extracted the following trial balance as at 31 March 20X8 from his business’s
Your bookkeeper extracted a trial balance on 31 December 20X5 which failed to agree by £210, a shortage on the credit side of the trial balance. A suspense account was opened for the difference. In
A trial balance was extracted from the books of V Baker, and it was found that the debit side exceeded the credit side by £40. This amount was entered in the suspense account. The following errors
Journal entries to correct the following are required, but the narratives can be omitted.(a) Rent Received £430 have been credited to the Commissions Received account.(b) Bank charges £34 have been
After preparing its draft final accounts for the year ended 31 March 20X6 and its draft balance sheet as at 31 March 20X6 a business discovered that the stock lists used to compute the value of stock
Give the journal entries needed to record the corrections of the following. Narratives are not required.(a) Extra capital of £5,000 paid into the bank had been credited to Sales account.(b) Goods
Show the journal entries necessary to correct the following errors:(a) A sale of goods £412 to T More had been entered in T Mone’s account.(b) The purchase of a machine on credit from J Frank for
Give an example of each of the different types of error which are not revealed by a trial balance?
A friend of the family believes that depreciation provides him with a reserve to purchase new assets. His secretary has blown up his computer, but he knows he has the funds to replace it in the
On 1 September, V Duckworth, a bar manager and entrepreneur, has the following financial position relating to her activities as a corporate function organiser:During September the following events
(a) What is the meaning of depreciation?(b) Give three reasons why depreciation may occur.(c) Name two methods of depreciation.(d) In what way do you think the concept of consistency applies to
The following is a summary of the receipts and payments of the Miniville Rotary Club during the year ended 31 July 20X9.The following valuations are also available:Required:(a) Calculate the value of
A business prepares its financial statements annually to 30 April and stock-taking is carried out on the next following weekend. In 20X5, 30 April was a Wednesday. Stock was taken on 3 May and the
Bill Smithson runs a second-hand furniture business from a shop which he rents. He does not keep complete accounting records, but is able to provide you with the following information about his
R Sheldon presents you with the trading account set out above. He always calculates his selling price by adding 331/3% of cost on to the cost price.(a) If he has adhered strictly to the statement
Complete the gaps in the following table: (b) (c) (d) (f) Assets £ 12,500 28,000 16,800 19,600 ? ? Liabilities £ 1,800 4,900 ? · ? 6,300 11,650 Capital 42.7. ? ? 12,500 16,450 19,200 39,750
Complete the gaps in the following table: (a) (b) (c) (d) (e) (f) Assets £ 55,000 ? 36,100 119,500 88,000 ? Liabilities £ 16,900 17,200 ? 15,400 ? 49,000 Capital £ ? 34,400 28,500 ? 62,000 110,000
Showing 1300 - 1400
of 1591
First
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16