Append below a snapshot of some frequently used terms in process costing. Before we go further, we should first understand the term process costing which is “the costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes. Costs are averaged over the units produced the period” Snapshot … Read more
Answers to Questions On Final Accounts True False 1.0 The income statement shows either net profit or net loss for a particular period X 2.0 Gains from the sale or exchange of assets are not considered as the revenue of the business X 3.0 The salary paid in advance is not an expense because it … Read more
QUESTIONS [ click here for ANSWERS] True False 1.0 The income statement shows either net profit or net loss for a particular period 2.0 Gains from the sale or exchange of assets are not considered as the revenue of the business 3.0 The salary paid in advance is not an expense because it neither reduces … Read more
Answer to Question on Subsidiary Books True False 1.0 Total of Return Inward Register is credited to Return Inwards Account X 2.0 The sale of an old car is recorded in the Sales Register X 3.0 Credit Note is the basis for making entry in the Purchase Returns Book X 4.0 The Sales Register is … Read more
QUESTIONS [ click here for ANSWER ] True False 1.0 Total of Return Inward Register is credited to Return Inwards Account 2.0 The sale of an old car is recorded in the Sales Register 3.0 Credit Note is the basis for making entry in the Purchase Returns Book 4.0 The Sales Register is a part … Read more
QUESTIONS ( click here for ANSWER) True False 1. Accounting Principle is general law or rule followed in the preparation of financial statements 2. Usefulness, objectivity and feasibility are the three basic norms generally found in accounting principles 3. The entity concept considers the business and the proprietor as distinct … Read more
QUESTIONS on ACCOUNTING CONCEPTS & DOUBLE ENTRY SYSTEM True False 1. Accounting Principle is general law or rule followed in the preparation of financial statements X 2. Usefulness, objectivity and feasibility are the three basic norms generally found in accounting principles X 3. The entity concept considers the business and the proprietor as distinct from … Read more
REFER TO QUESTIONS True False 1.0 Receipts and payments account starts with the balance in the beginning and ends with the balance at the end X 2.0 Income and expenditure account is a real account X 3.0 General donations of small amount appearing in Receipts and Payments account are treated as income and carried to … Read more
QUESTIONS [ CLICK HERE FOR ANSWER] True False 1.0 Receipts and payments account starts with the balance in the beginning and ends with the balance at the end 2.0 Income and expenditure account is a real account 3.0 General donations of small amount appearing in Receipts and Payments account are treated as income and carried … Read more
I just join a newly set up company. Now I need to choose a depreciation method whether it should be on a straight-line basis(SL), unit of production basis, declining/reducing balance basis or sum of digit (SD) methods? So how do I go about doing it? Answer: Based on your Capital Budget you should able to … Read more