Refresh or test your accounting knowledge on stocks or inventory: QUESTIONS: 1.0 Describe the accounting treatment of free samples received from suppliers and “sale or return” goods held by customers 2.0 Define “net realizable value” 3.0 What is the basic rule regulating the value at which stocks should be stated in the balance sheet 4.0 … Read more
Refresh or test your accounting knowledge on Cost of goods sold,accruals and prepayments: QUESTIONS: 1.0 What are the possible explanations for differences between the balance shown on a bank statement and the balance shown by a cash book?—–>> refer article 2.0 Describe the procedure or steps on preparing a bank reconciliation —->> refer article Click … Read more
Refresh or test your accounting knowledge on Wages & Salaries Accounting: QUESTIONS: 1.0 What do the initials PAYE stand for? 2.0 List three voluntary deductions that an employee might permit from his gross pay 3.0 What is the total cost of employing staff shown in an employer’s income statement? 4.0 Briefly summarize the principles of calculating … Read more
Refresh or test your accounting knowledge on Control or Total Accounts QUESTIONS:1.0 What is a control account? —->> refer article 2.0 What ledger entries are made from the discounts allowed column in the cash book? 3.0 Give three examples of typical entries on the credit side of a debtors control account —–>> refer article 4.0 … Read more
Refresh or test your accounting knowledge on bills of exchange: QUESTIONS:1.0 Define a bill of exchange 2.0 Explain the process of “discounting” a bill of exchange 3.0 “Bills receivable” in the books of a business record amounts of money owing to the business. True or false? 4.0 What are the accounting entries when a bill … Read more
Refresh or test your accounting knowledge on prime books of entry: QUESTIONS: 1.0 List the seven books of prime entry 2.0 What is meant by an “imprest system”? 3.0 Why is it necessary for businesses to maintain a sale ledger? 4.0 What types of transaction are recorded in the journal? 5.0 List four types of … Read more
Refresh or test your accounting knowledge on principles of ledger accounting: QUESTIONS: 1.0 What is the distinction between personal accounts and impersonal accounts? 2.0 A debit entry in the cash account signifies a receipt of cash. True or false? 3.0 What are the ledger entries necessary to record: (a) payment of a rent bill? (b) … Read more
Refresh or test your accounting knowledge on fixed assets re: depreciation,revaluation and disposal: QUESTIONS: 1.0 Define depreciation 2.0 What is the “depreciable amount” of a fixed asset? 3.0 Describe the method of calculating a depreciation charge under: (a) the straight line method (b) the reducing balance method 4.0 In the later years of an asset’s … Read more
Refresh or test your accounting knowledge by answering the following questions on Discounts, Bad Debts and Provisions QUESTIONS: 1.0 Distinguish between trade discount, cash discount and settlement discount 2.0 How is cash discount treated for accounting purposes? 3.0 How are bad debts treated for accounting purposes? 4.0 A decrease in the provision for doubtful debts … Read more
Refresh or test your accounting knowledge on Cost of goods sold,accruals and prepayments: QUESTIONS: 1.0 Give the formula for calculating the cost of goods sold? 2.0 How is the cost of carriage inwards treated for accounting purposes? 3.0 How is a reduction in stock value treated for accounting purpose? 4.0 Define accruals and prepayments Click … Read more