Manufacturing account is prepared to determine the
- A. cost of goods sold
- B. cost of goods produced
- C. profit on goods produced
- D. value of work-in-progress
Accounting information that is useful for the intended purpose and would make a difference in decision making is
- A. comparable
- B. consistent
- C. relevant
- D. reliable
Members of a not-for-profit making organization
- A. earn dividend on their contributions
- B. do not receive surplus at the end of the year
- C. are paid interest on their contributions
- D. share profits according to their contributions
Subsidiary books of account are used to record transactions
- A. made in the same period
- B. of a similar nature
- C. involving minor amounts
- D. without source documents
All cash transactions of a not-for-profit making organization are recorded in
- A. three-column cash book
- B. income and expenditure account
- C. subscriptions account
- D. receipts and payments account
Use the following information to answer this question
GH¢
Gross profit 50,400
Discounts relieved 3,300
Discounts allowed 2,500
Net profit 26,500
Cost of goods sold 184,000
Other operating expenses for the period is
- A. GH¢27,300
- B. GH¢25,700
- C. GH¢24,700
- D. GH¢23,900
Use the following information to answer this question
GH¢
Gross profit 50,400
Discounts relieved 3,300
Discounts allowed 2,500
Net profit 26,500
Cost of goods sold 184,000
Sales for the period is
- A. GH¢234,400
- B. GH¢210,500
- C. GH¢133,600
- D. GH¢76,900
A business includes 50% mark-up on all its products. This would mean margin of
- A. 66 2/3%
- B. 66 1/3%
- C. 33 2/3%
- D. 33 1/3%
The major source of revenue for central/federal government is
- A. tenement rate
- B. excise duty
- C. market toll
- D. parking roll
The value of goods sent to a branch is debited to the
- A. goods sent to branch account
- B. branch debtors account
- C. branch adjustment account
- D. branch stock account
The final stage of accounting process is
- A. interpretation
- B. recording
- C. reporting
- D. summarizing
Commercial activities undertaken by a social club to raise funds include
- A. donation
- B. bar
- C. grant
- D. subscription
The petty cash account has an imprest of GH¢36,000 and a debit balance of GH¢10,000 at the end of the month.The reimbursement required would be
- A. GH¢46,000
- B. GH¢36,000
- C. GH¢26,000
- D. GH¢10,000
Lima paid off debt of D2,500 owed to Dongo by cash. The entries in lima’s book are: debit
- A. cash D2,500; credit Dongo D2,500
- B. Dongo D2,500; credit cash D2,500
- C. Bad debt D2,500; credit Dongo D2,500
- D. Dongo D2,500; credit bad debt D2,500
The accounting principle of double entry states that
- A. debit the giver and credit the receiver
- B. assets must be equal to capital plus liabilities
- C. every debit entry must have a corresponding credit entry
- D. debit entries increase liabilities while credit entries increase assets
Recurrent expenditure of a local government include
- A. erection of market stalls
- B. repayment of loans
- C. purchase of office equipment
- D. purchase of office stationery
Accounts of fixed assets are kept in the
- A. purchases ledger
- B. private ledger
- C. sales ledger
- D. general ledger
The type of stock recorded in the trading account of a manufacturing business is
- A. raw material
- B. work-in progress
- C. consumables
- D. finished goods
Company as a legal entity means that it
- A. must always have a company lawyer
- B. can sue and be sued
- C. must settle disputes among shareholders in court
- D. should prepare accounts approved by a lawyer
Use the following information to answer this question
Le
Sales for the year 450,000
Purchases for the year 230,000
Opening stock 60,000
Closing stock 40,000
The mark-up is
- A. 88%
- B. 80%
- C. 44.44%
- D. 26.67%
Use the following information to answer this question
Le
Sales for the year 450,000
Purchases for the year 230,000
Opening stock 60,000
Closing stock 40,000
The stock turnover period is
- A. 88 days
- B. 73 days
- C. 58 days
- D. 41 days