Accounts - Principles of Accounts Past Questions and Answers

In a manufacturing company, the total cost of goods produced is equivalent to?

A Purchases
B Sales
C Cost of goods sold
D Cost of materials used

Question 252:

Given:
Sales Ledger Control Account (Extracts)
Balance b/f N10,600
Total cash payments by debtors N32,275
Total credit sales N59,193
Discount received N9,700
Balance c/f N20,751
Discount allowed N2,890
Determine the sales returns?

A N24,577
B N13,877
C N7,067
D N2,890

Question 253:

The simplest form of single entry procedure consists fo keeping a?

A Day book or general journal
B Cash book and ledger accounts showing debtors and creditors balances
C Cash journal, sales journal and purchases journal
D Day book in which transactions are described in chronological order

Question 254:

A fixed cost is fixed only in relation to?

A The quality of goods produced
B The quantity of goods sold
C A given period of time and a range of activities
D A given period of time and the nature of activity

Question 255:

One of the advantage of the shortcomings of single entry procedures is that?

A A trial balance is not available
B Profits are overestimated
C There are no subsidiary books
D There are no control accounts