Accounts - Principles of Accounts Past Questions and Answers

The major advantage of the journal proper is that it

A Helps in the preparation of the balance sheet
B Prevents fraud and theft of item of the business
C Serves as a book of instruction to the bookkeeper
D Help the banking industry to be efficient

Question 1057:

Departments K Y
Opening 2,500 800
Purchases 120,000 100,000
Sales 180,000 200,000
Salary 8,000 30,000
Closing stock 3,000 1,500
Rate expenses of 1,500 are apportioned in the ratio 1:2
The gross profit for K is

A # 60,700
B #23,500
C #60,500
D #82,500

Question 1058:

One of the objectives of accounting is that it can be used for

A Business decision making
B Due process in business
C Motivating employees
D Determining the work force

Question 1059:

The ratio that gives the indication of the efficiency of a firm's sales with respect to cost of goods sold is a

A Return on capital employed
B Gross profit margin
C Net profit margin
D Return on equity

Question 1060:

The instrument used in analysis and interpretation of financial statement is the

A Accounting ratios
B Income and expenditure extract
C Balance sheet extract
D Found accounting