[Waec Answer] Waec 2018 Financial Accounting Objective and Theory Questions And Answers Now Posted
Accounts Objective and Theory Questions And Answers.
i. It can result in a business exhausting the budget, leading to spending more than
what is coming in.
ii. Businesses may need to file for bankruptcy or shut their doors if they fail to keep adequate records from the beginning.
iii. It can result in problems with suppliers, payroll, utilities, and other vital components to a running successful business.
– Relevance means an account information to make a difference in decision making
– Comparability means an account information can be used to compare different entities
– Consistency: information is consistently presented from year to year
– Reliability means an account information is verifiable, factual, and neutral
– Accounting information is historical in nature
– there is no information as to usefulness, size or quantity because accounting is expressed in monetary terms
*2a* *DIRECT MATERIALS COST*: This is the expenditure incurred on raw materials which can be traced to a particular production units.. E.g orange in fantasy making. *DIRECT LABOUR COST*: This refers to the wages of employees who are directly engaged in the production process as e.g wages of machine operator. *FACTORY OVERHEAD*
These relates to the expenditure incurred in running the factory which cannot be traced to a particular production units..
I) Merchandise stock
It is the inventory of trading goods held by the trader.
II). Manufacturing Stock
It is the inventory held for manufacturing and selling of goods. Based on the value addition or stage of completion, the manufacturing inventories are further classified into 3 types of inventory – Raw Material, Work-In-Progress, and Finished Goods
III) Anticipatory Stock
Based on the past experiences, a businessman is able to foresee the future trends of the market and takes certain decisions based on that. Expecting a price rise, a spurt in demand etc some businessman invests money in stocking those goods. Such kind of inventory is known as anticipatory stock. It is normally the raw materials or finished goods and this strategy is executed by traders.
Pick just 2(two)
Departmental accounts help to understand or locate the success, failure, rates of profit, etc.
(B) It helps the management to make proper plan of action, policies in order to increase profit after analysing the results of operation of various departments.
(C) Departmental accounting helps us to understand which department should be expanded further or which one should be closed down as per the results of the operation.
(D) If also helps to encourage a healthy competitive spirit among the various departments which, ultimately, helps to increase profits of the firm as a whole.
(E) For additions or alterations of various departments, departmental accounts helps a lot as it supplies the necessary information.
Cash book Adjustment
Bal bld N 48,500
interest on investment N 2500
credit transfer N 3000
54,000 Left Table
Bank Charges N 1000
Dishonured cheques N 2000
bal cld N 51,000
Total Bal bld N 51,000
Bank Reconcilation statement at 31/ 12/ 2016
balance as per adjusted cash book N N 51,000
add unpresented cheques 8850
add back wrong credit 3500
12,350 / 63,350
less uncredited cheques ( 8450)
balance as per bank statement N 54,900
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