43
In a partnership goodwill is recognized when
- A. a new partner is admitted
- B. a partner is dormant
- C. the business is making huge profit
- D. the business has good customer relations
- E. it is a limited partnership
44
An example of appropriation of profit in a company is
- A. salaries
- B. rent income
- C. debenture interest
- D. director's remuneration
- E. dividend
45
A Receipt and Payments Account reveals
- A. net profit
- B. surplus
- C. cash in hand
- D. gross profit
- E. net loss
46
Which of the following is not a capital expenditure to a local government?
- A. beds
- B. theatre equipment
- C. incubators
- D. x-ray machine
- E. drugs
47
A sales day book is used to record
- A. cash sales of stock
- B. credit sales of stock
- C. cash and credit sales of stock
- D. cash sales of fixed assets
- E. credit sales of fixed assets
48
Subscription in advance is treated in the Balance sheet of non-profit making organizations as
- A. current asset
- B. fixed asset
- C. current liability
- D. accumulated fund
- E. goodwill
49
To correct an error, the purchases account was debited while Suspense account was credited. Which of the following was the cause of the error?
- A. undercasting of purchase
- B. overcasting of purchases
- C. original entry
- D. transportation of returns outwards
- E. omission of creditor's balance
50
A suspense account is used to
- A. agree the trial balance
- B. recoord sales
- C. record purchases
- D. correct errors
- E. prepare the balance sheet