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Accounts - Principles of Accounts Past Questions

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2971

Four broad classifications of overheads are

  • A. production, selling, distribution and administration
  • B. production, selling, distribution and material
  • C. selling, distribution and material
  • D. distribution, selling, administration and materials
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2972

Which of the following are advantages of departmental accounts?

  • A. the capital of the business can be calculated easily
  • B. easy knowledge of the sources of funding
  • C. encouragement of healthy rivalry among the various department
  • D. the department making the highest profit can be easily determined
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2973

The debenture issued at par above the nominal value is Said to be issued at a

  • A. margin
  • B. premium
  • C. cost price
  • D. mark-up
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2974

The standing order is a payment instruction given by a

  • A. customer to a fellow customer
  • B. bank to an employee
  • C. customer to the bank
  • D. bank to the customers
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2975

The value of the sales ledger control account is derived from the summation of the

  • A. total creditors control account
  • B. total debtors control account
  • C. all day books
  • D. both the debtors and creditors accounts
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