Protected: Waec Gce 2016 Financial Account Obj And Theory Answers –Nov/Dec Expo

CONFIRMED FINANCIAL ACCOUNTING OBJ 1-10 AABCABDDCB 11-20 DDCBABACAC 21-30 ABCDADBCAB 31-40 BBBCADDACB 41-50 CACABDDCAD . Read before you shade 100% VERIFIED ACCOUNTING ANSWERS SECTION A COMPLETED ================================== 1a)control account can be defined an account used to record the balances on a number of subsidiary accounts and to provide a cross-check on them. uses of control account 1. Check on the accuracy 2. Location of errors 3. For internal check 4. More Simply and Quickly C.Limitations of accounting ratio (1) Ratios are based on accounting figures given in the financial statements. However, ac­ counting figures are themselves subject to deficiencies, approximations, diversity in practice or even manipulation to some extent. Therefore, ratios are not very helpful in drawing reliable conclusions. 2) Ratios have inherent problem of comparability. Companies otherwise similar may employ different accounting methods, which can cause problems in comparing certain key relationships. For example, inventory turnover can be different for a company using FIFO than for the other company using LIFO method of inventory valuation. 3) Accounting ratios are not totally dependable and they must be used after giving due weight- age to general economic conditions, industry situation, position of firms within the industry, mode of operations, size of firm, diversity of product which can make the business enterprises completely dissimilar and thus affect the computation of accounting ratios. =================================== 2a) working capital: is the amount of a company’s current assets minus the amount of its current liabilities. 2b) Capital employed; is the total amount of capital used for the acquisition of profits. 2c) fixed asset: is an asset that is not consumed or sold during the normal course of business, such as land, buildings, equipment, machinery, vehicles, leasehold improvements, and other such items. 2d) Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year. 2e) Rate of Stock turnover is a financial efficiency ratio that helps answer a questions like “have we got too much money tied up in inventory”? An increasing stock turnover figure or one which is much larger than the “average” for an industry may indicate poor inventory management. ================= Jamb Result Checker Questions and Answers Biology Answers 3a) The accrual concept in accounting means that expenses and revenues are recorded in the period they occur, whether or not cash is involved. 3b) The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. 3c) Dual Aspect Concept, also known as Duality Principle, is a fundamental convention of accounting that necessitates the recognition of all aspects of an accounting transaction. 3d) PERIODICITY CONCEPT is the concept that each accounting period has an economic activity associated with it, and that the activity can be measured, accounted for, and reported upon. 3e) The going concern principle is the assumption that an entity will remain in business for the foreseeable future. Conversely, this means the entity will not be forced to halt operations and liquidate its assets in the near term at what may be very low fire-sale prices. 4a) A company is a legal entity made up of an association of persons, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. 4bi) An ordinary share represents equity ownership in a company proportionally with all other ordinary shareholders, according to their percentage ownership in the company. All other shares of a company’s stock are, by definition , preferred shares 4b(ii)Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, the shareholders with preferred stock are entitled to be paid from company assets first. 4b(iii) A debenture is a type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond to secure capital. 4b(iv) The authorised capital of a company (sometimes referred to as the authorised share capital, registered capital or nominal capital, particularly in the United States) is the maximum amount of share capital that the company is authorised by its constitutional documents to issue (allocate) to shareholders. =========================== (5a) journal (i)suspense purchase Dr GHC(19,000) , Cr GHC(19,000) (ii)returns inwards suspenses Dr(8000), Cr(8000) (iii)suspense cashbook Dr(19,600), Cr(19,000) (iv)suspense cash ook Dr(98,000), Cr(98,000) (v) repairs of plant and machinery Dr(11,000) , Cr(11,000) (vi) customer sales Dr(158,980), Cr(158,950) (vii) supplier suspense(25,500 *2) Dr(51,000) cr(51,000) (5b) Suspense A/C: Debit side: purchases(19,000) cash book(19600) cash book(98000) credit side; returns inward(8,000) supplier (51,000) c/f (77,600) 136,600 ================================== (9) king star enterprises departmental, trading, profit & loss acct Debit side: A le, B le opening stock: 1000, 800 add purchases: 147200, 132800 148200, 123,600 add carriage: 1000, 1000 149200, 124600 less closing stock: 1200, 600 148000,124000 gross profit: 12000,16000 160000, 140000 office exp: 480, 120 rates: 176, 94 insurance: 692, 173 light: 384, 96 repairs: 240, 60 net profit: 10028, 159507 12000, 160000 credit side A le, B le sales: 160000,140000 160000, 140000 gross profit: 12000, 16000 12000, 160000 KEEP REFRESHING