University | PSB Academy (PSB) |
Subject | Accounting |
Question 2
hint- There are definitely errors in the accounts if the trail Balance is not balanced. However, a balanced Trial Balance does not necessarily mean that there are no errors.”
Citing examples, list and explain five (5) errors not revealed by a Trial Balance.
Question 3
“Ratio analysis reveals hidden facts” — Comment on this statement highlighting the merits and demerits of ratio analysis.
Question 4
From the following information, you are required to classify the type of account whether it is an asset (capital expenditure) or an expense (revenue expenditure), and justify your classification with appropriation reasons: (ii) Cost of additions and alternations to office building ce
(iii) Legal costs incurred for the purchase of building bt. (iv) Purchases of goods for resale Qtr,
(v) Sales promotion expenses to promote a new product
(vi) Carriage inwards to bring the goods inside the factory c$5
(vii) Grading and Levelling costs incurred on land meant for the constructor
(viii) EnhancementEnhancement of configuration to increase computer disc capacity (A (ix) I thumb drive for storage of accounting information S (x) Stamp duty for the purchase of new office premises
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