Sales account was undercast by GH¢ 1,000. When this is corrected, both the gross profit and the net profit would
- A. increase by GH¢2,000
- B. increase by GH¢l,000
- C. decrease by GH¢l,000
- D. decrease by GH¢2,000
Accounting evolved out of the need of businesses for
- A. profit making
- B. record keeping
- C. increasing sales
- D. obtaining finance
Net profit of a sole proprietor is transferred to the
- A. profit and loss account
- B. profit and loss appropriation account.
- C. capital account
- D. drawings account
Goods returned to the supplier is recorded in the accounts as: debit
- A. Sales Returns Account; credit Suppliers' Account
- B. Purchases Returns Account; credit Supplier's Account
- C. Supplier's Account; credit Purchases Returns Account
- D. Supplier's Account; credit Purchases Account
Reducing balance method charges depreciating as fixed percentage of the
- A. net book value of asset
- B. cost of asset
- C. market value of asset
- D. accumulated depreciation on asset
Use the following information below to answer this question.
Attama and Wawa were in partnership sharing profits and losses in the ratio 4:3. Attama was entitled to a salary of D13,000 per annum. A net profit of D34,000 was made for the year.
Attama’s share of profit is
- A. D21,000
- B. D19,428
- C. D12,000
- D. D9,000
Use the following information below to answer this question.
Attama and Wawa were in partnership sharing profits and losses in the ratio 4:3. Attama was entitled to a salary of D13,000 per annum. A net profit of D34,000 was made for the year.
The residual profit of the business for the year is
- A. D47,000
- B. D34,000
- C. D22,000
- D. D21,000
The difference between the market value of goods produced and the cost of production is
- A. net profit on goods sold
- B. gross profit on manufacturing
- C. closing stock of work-in-progress
- D. prime cost of manufacturing
Where partners maintain a fluctuating capital account, partners’ share of profit is credited to
- A. capital account
- B. profit and loss appropriate account
- C. current account
- D. profit and loss account
A limitation of the money measurement concept is that
- A. it results in inaccurate financial statements
- B. financial statement is not easily understood
- C. important non-monetary activities are not reported
- D. the reports are not comparable to that of other businesses
In the preparation of financial statements, full disclosure of minor events are ignored in line with
- A. accrual concept
- B. money measurement concept
- C. business entity concept
- D. materiality concept
The original record containing the details of a transaction which serves as a basis for posting is
- A. general ledger
- B. source document
- C. subsidiary book
- D. trial balance