NAPTEB FINANCIAL ACCOUNTING O’LEVEL VERIFIED OBJECTIVES ANSWERS ✍️✍️✍️✍️
Financial Accounting obj:
1 -10CAACD CBDBA
21-30 ABCBA BDCBA
31-40 ACABA BBBBA
41-50 BBDBB BCAAA.
NAPTEB GCE (FINANCIAL ACCOUNTING) THEORY QUESTIONS DROPPED AND SOLVED WITH VERIFIED ANSWERS 💯
(1a) Book of prime entry is a book or record in which certain types of transaction are recorded before becoming part of the double-entry book-keeping system. The most common books of prime entry are the day book, the cash book, and the journal.
*(Choose Any Four)
(i) Sales day book
(ii) Purchase day book
(iii) Sales returns day book
(iv) Purchases returns day book
*(choose Any Four)
(i) It is used to answer questions on double entry principles
(ii) It is used in correction of errors
(iii) It is used in opening and closing entries
(iv) It is used in purchase of fixed assets on credit
(v) It is used in sales of fixed assets on credit
(vi) It is used in writing off bad debt
*(ADVANCED LEVEL NABTEB FINANCIAL ACCOUNTING)
Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials. Factory overhead is normally aggregated into cost pools and allocated to units produced during the period. It is charged to expense when the produced units are later sold as finished goods or written off.
Market value of goods manufactured is a term used in managerial accounting that refers to a schedule or statement that shows the total production costs for a company during a specific period of time. It is also the total cost incurred to manufacture products and transfer them into finished goods inventory for retail sale.
Principle: An error of principle is an accounting mistake in which an entry violates a fundamental principle of accounting or a fundamental accounting principle established by a company.
Example : Motor Van bought entered in motor expense account
(2b)Compensation:compensating error is an accounting error that offsets another accounting error. These errors can be difficult to spot when they occur within the same account and in the same reporting period, since the net effect is zero.
Example, the wages expense could be too high by $2,000 due to one error, while the cost of goods sold could be too low by $2,000 due to a compensating error.
(2c)commission : Error of commission is an error that occurs when a bookkeeper or accountant records a debit or credit to the correct account but to the wrong subsidiary account or ledger.
For example, money that has been received from a customer is credited properly to the accounts receivable account, but to the wrong customer.
(2d)Complete reversal of entries: This errors occur when the correct amount is posted to the correct accounts but the debits and credits have been reversed. This is when an item is posted to the wrong side of the account
For example ; receipt of cheque 31,000 from Okoye’s was debited to Okoye’s account and credited to bank account
(2e)Omission: Error of omission occurs when transactions are completely omitted from the debit and credit side of the book. This error is corrected by entering the omitted amount in the journal and posting in the ordinary way
For example, A copywriter buys a new business laptop but forgets to enter the purchase in the books….
*ADVANCED NABTEB FINANCIAL ACCOUNTING
(i) Separate Entity:
LLC is a separate legal entity in almost many states; meaning thereby that it can own a property, retain attorneys, sell or buy a property, etc on its own. It is distinct from its owners. Owners are not responsible for the obligations of the corporation.
(ii) Limited Liability:
One of the features of LLC is the limited liability of the employees, members, managers, etc. It simply means that the members are not responsible for the misdeeds, legal faults of the other members. Hence, they have protection for the same. But they are responsible for their own wrong legal misconducts.
While the corporations continue to operate in case of any death or insolvency or if anybody leaves. But this condition is not compulsory in the case of LLC. It is fully the member’s decisions to whether or not continue in the same company or create their new one.
There is a simplicity in the case of documentation and carrying out operations of the company. There is a less record keeping comparatively.
*(ADVANCED LEVEL NABTEB)
(8a)consignor: The consignor is the person sending a shipment to be delivered whether by land, sea or air. Some carriers, such as national postal entities, use the term “sender” or “shipper” but in the event of a legal dispute the proper and technical term “consignor” will generally be used.
(8b)consignee: consignee is the entity who is financially responsible (the buyer) for the receipt of a shipment. Generally, but not always, the consignee is the same as the receiver.
(8c)Del credere commission:
Del credere commission is related to credit sales. It is a type of commission which a consignor offers to the consignee who guarantees the collection of payment from credit customers
*ADVANCED NABTEB FINANCIAL ACCOUNTING
(i)Taxes: Taxes is one of the major source of income to state government. Many different types of taxes exist at the state level. Taxes are levied as a percentage of the amount of the purchase or income receive
(ii) Bonds: Bonds are another source of revenue for state governments. Bonds are basically loans, used to finance a specific project, such as a new school or sewer system.
(i)collection of tax: Revenue are equally generated through collection of rates on radio and television license, market shops and stalls etc
(ii) Grant: Local government receive grant from both the central and state government. However, in most cases, these grants are for specific projects
Solved by *SECRET TIME WOLF TEAM
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