THE PURCHASE CONSIDERATION THAT IS LOWER THAN THE NET ASSET IMPLIES THAT, THE BUYER HAS GAINED THE ADVANTAGE OF
A. capital reserve ✓ B. net loss C. revenue reserve D. net income The answer to the question is: A. capital reserve When the purchase consideration is lower than the net asset value, it implies that the buyer has gained the advantage of capital…
PURCHASE ACCOUNT IS OVERCAST BY 200 NAIRA, WHILE WAGES ACCOUNT IS UNDERCAST BY 200 NAIRA. THIS IS
A. an error of omission B. a compensating error ✓ C. an error of commission D. an error of principal The answer to the question is: B. a compensating error A compensating error in accounting occurs when two errors cancel each other out,…
THE SOURCE DOCUMENT USED TO MAKE ENTRIES IN THE PURCHASE DAY BOOK IS
A. debt note B. credit note C. invoice ✓ D. receipt The answer to the question is: C. invoice The purchase day book, also known as the purchases journal, is a specialized accounting journal used to record all credit purchases of merchandise. When a…
PURCHASE, SUPPLIES AND MERCHANDISING OF GOODS AND SERVICES
Marketing business is all about purchasing goods from manufacturer and making them available to consumers. Marketing outlet exist to bridge the gap between the manufacturer and the consumer by providing total marketing solutions to their clients. They purchase goods from…