NECO FINANCIAL ACCOUNTING ANSWERS 2020

Here is the neco financial accounting answers 2020, the answers will be updated regularly until it is complete. share to your friends and good luck.

(3i)
Returns inwards; this are goods returned to the selling entity by the customer, such as for warranty claims or outright returns of goods for a credit. For the customer, this results in the following accounting transaction. A debit (reduction) of accounts payable.

(3ii)
Returns outwards; this are goods returned by the customer to the supplier. For the supplier, this results in the following accounting transaction. A debit (reduction) in revenue in the amount credited back to the customer.

(3iii)
prospectus; in finance is a disclosure document that describes a financial security for potential buyers. It commonly provides investors with material information about mutual funds , stocks, bonds and other investments, such as a description of the company’s business, financial statements , biographies of officers and directors, detailed information about their compensation, any litigation that is taking place, a list of material properties and any other material information.

(3iv)
Prepayments; this are amounts paid for by a business in advance of the goods or services being received later on. Any payment made in advance can be considered a prepayment. A prepayment is not dissimilar to a deposit, but generally falls under a more set time period for fulfillment of the goods or service purchased.

(3v)
Cost of goods sold is the carrying value of goods sold during a particular period. Costs are associated with particular goods using one of the several formulas, including specific identification, first-in first-out, or average cost.

questions 6 answers

question 9 answers

questions 5 answers

4a)
A joint venture is a cooperative arrangement between two or more business entities, often for the purpose of starting a new business activity.

b)
i)Business Entity, Money ii)Measurement, iii)Going Concern, iv)Accounting Period,
v)Cost Concept, vi)Duality Aspect concept,
vii)Realisation Concept,
viii)Accrual Concept and Matching Concept

c)
i)Maintenance of business records
ii)Preparation of financial statements
iii)Comparison of results
iv)Decision making
v)Evidence in legal matters
vi)Provides information to related parties

1a)
i)Time lag between writing a cheque and the payment appearing on the bank statement (unpresented cheques)

ii)Time lag between depositing amounts into the bank account and these appearing on the bank statement (unrecorded lodgements)

iii)Direct debits and standing orders are not yet recorded in the cash account (or cash book)

iv)Bank charges not recorded in the cash account (or cash book)

v)Errors, such as transposition errors, or casting errors in the cash account (or cash book)

vi)Errors made by the bank on the bank statement

1c)
i)suppliers
ii)banks
iii)customers iv)investors v)potential vi)investors
vii)tax authorities.

(2a)
(i)Enable Average Balance Processing for Specified Sets of Books.
(ii)Capture Average Balances.
(iii)Effective-Date Transaction Processing.
(iv)Transaction Calendar Control.
(v)Control Transaction Balancing by Effective
Date.

(2b)
(i)Marketing expenses
(ii)Discounts on the issue
of shares

(2c)
(i)Opening stock.
(ii)Purchase and purchase return.
(iii)Purchase related expenses.
(iv)Factory or manufacturing expenses.
(v)Sales and sales return

(2d)
(i)Active/Managing Partner .
(ii)Sleeping Partner .

(i)Active/Managing Partner: An active partner mainly takes part in the day-to-day running of the business and also takes active participation in the conduct and management of the business firm.

(ii)sleeping partner; is also known as a “dormant partner”. This partner does not participate in the day-to-day functioning activities of the partnership firm. A person who has sufficient money or interest in the firm, but cannot devote his time to the business, can act as a sleeping partner in the firm.