2024 NECO FINANCIAL ACCOUNTING: 2024 NECO Financial Accounting (Objective, Theory & Practice) questions and answers (4529)

(1a)
DISCOUNT ALLOWED
(i) Discount allowed is granted by the seller to the buyer.
(ii) The discount allowed is the expense of the seller.
(iii) Discount allowed is debited in the books of the seller.

DISCOUNT RECEIVED
(i) The discount received is received by the buyer from the seller.
(ii) Discount Received is an income of the buyer.
(iii) Discount Received is credited in the books of the buyer.

(1b)
(i) Cash book
(ii) Purchases book
(iii) Sales book
(iv) Purchases return or return outwards book
(v) Sales return or return inwards book

(1c)
ERROR IT REVEALS
(i) Wrong Totaling of
(ii)Subsidiary Books
Posting of the Wrong Amount
ERROR THAT DOESN'T AFFECT IT
(i) Error of principle
(ii) Error of commission
(iii) Error of omission

(2)
(i) Accumulated fund: An accumulated fund is a type of account that serves as the repository for funds that are collected over time by non-profit organizations and are above and beyond the money needed to cover operational and other expenditures.

(ii) Depreciation: It's the reduction of a recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible.

(iii) Nominal Capital: It's the amount of capital that a business can offer to shareholders, in the form of shares of stock. In most nations, the amount of this nominal share capital is regulated by governmental agencies that determine the financial stability of the business and the company’s ability to cover the value of those shares.

(iv) Bad debt: Bad debt is an expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible and is thus recorded as a charge off.

(v) Net profit: is the amount of money your business earns after deducting all operating, interest, and tax expenses over a given period of time.

(6)

(7)

(8)