NECO BOOK KEEPING Answers
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OBJ ANSWERS
1-10 CBAEEBBCBD
11-20 BDEDDABABD
31-40 DEECABDEED
41-50 BAADAECAEE
51-60 BCBBAAECDA
Theory Answers by Sir.Donizzy
1a)
1. Simple Cash Book
ii). Two-Column Cash Book
iii)Three-Column Cash Book
iv)Petty Cash Book:
1b
tabulate
bad debt
-Bad Debts is a debts that cannot be recovered
provision for bad debts
-this is a estimated amount set aside for doubtful debts which cannot be accurately calculated.
1c
- differnce in signature
- the death of the drawer
- bankruptcy
- frozen account
- non- existing Account
2a
- it helps in locating errrors
- there are allow homogenous account to b grouped together
-there can be use to detect missing figures
2c)
-invoice
-credit note
-debit note
-pretty cash voucher
statement of account
3a Going concern is an accounting term for a company that has the resources needed to continue to operate indefinitely until a company provides evidence to the contrary, and this term also refers to a company's ability to make enough money to stay afloat or avoid bankruptcy.
b. Currency unit (such as the dollar, euro, peso, rupee) issued as a coin or banknote, and used as a standard unit of value and a unit of account. A monetary unit may be issued in several denominations which are multiples (such as $1, $5, $10, etc.) or fractions (such as �1, �5, �10, etc.) of the basic unit.
c. A historical cost is a measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company.
d. A business entity is an entity that is formed and administered as per commercial law in order to engage in business activities, charitable work, or other activities allowable
e. The accrual concept in accounting means that expenses and revenues are recorded in the period they occur, whether or not cash is involved.
4a.
FIFO stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold. In other words, the cost associated with the inventory that was purchased first is the cost expensed first.
b. LIFO" stands for last-in, first-out, meaning that the most recently produced items are recorded as sold first. Since the 1970s, some U.S. companies shifted towards the use of LIFO, which reduces their income taxes in times of inflation, but since IFRS banned LIFO, more companies returned to FIFO
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