gross profit is sales less cost of sales i.e. N180,000 – N79,000 = N101,000
An advantage of using accounting ratios is that
can be easily calculated
show errors and frauds
facilitate decision making
are stipulated by law
Accounting ratios helps management in taking decision the totality of the activities in an organization
The document setting out the regulations regarding shares, meetings and internal organization of a company is known as
memorandum of association
articles of association
the article of association center on the rules and regulation governing the internal working of the company. It’s totally in line with the question.
The loss made by a non profit making organization is called
deficit in a non for profit making organization stands for loss and it is the excess of expenses over bar profit and other income.
If rent account is debited instead of rate account, the error committed is that of;
Use the following information to answer this question.
Provision for bad debt 1500
1. Bad debt written off amount to 3000
2. Debtors balance as at the end of the year is 28,000
3. Provision for bad debts stand at 10%
How much is to be charged to profit and loss account as provision for bad debt?
Being that debtors balance minus bad debt written off multiplied by 10% and subtracted from the initial provision
28000 – 3000 = 25,000 X 10% = 2500
:. 2500 – 1500 = 1,000 (increase in provisions)
Use the information below to answer this question.
A limited liability company has an authorized shares capital of 50 million split into 100 millions shares. 80million shares are offered for subscriptions at 60k per share in full on application. These have been fully subscribed on issue
What is the nominal value of each share
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