FINANCIAL ACCOUNTING NOVDEC TRIALS
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*1. (a)* What is a suspense account?
*(b)* Explain *five* errors that would not affect the agreement of the Trial balance.
*(c)* Mention a class of account that would always show:
*(i)* debit balance;
*(ii)* credit balance.
❇️ *2. (a)* State two ratios which fall under the following classification of accounting ratios:
*(i)* profitability;
*(ii)* activity;
*(iii)* liquidity;
*(iv)* investment;
*(v)* leverage.
*(b)* Outline:
*(i)* *three* uses of accounting ratios;
*(ii)* *two* limitations in the use of accounting ratios.
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❇️ *3.(a)* What is a manufacturing account?
*(b)* Explain the following terms:
*(i)* prime cost;
*(ii)* factory overheads;
*(iii)* work-in-progress;
*(iv)* cost of goods transferred;
*(v)* finished goods;
*(vi)* profit on manufacturing.
❇️ *4.* Explain the following terms as they are used in contract accounts:
(a) Notional profit;
(b) Retention money;
(c) Progress payments;
(d) Work certified;
(e) Work-in-progress.
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1November 14, 2023 750
