Departmental Accounts
Accounts · 50 practice questions
Objectives of departmental accounts; apportionment of expenses; the departmental trading and profit and loss account.
- Identify the reasons for preparing departmental accounts.
- Determine the expenses and income attributable to each department.
- Compute departmental profit or loss.
Try a few questions
- Practice question 1
Separate departmental stock records specifically help a business track
- A.no particular detail of any kind, despite maintaining separate records
- B.the quantity and value of stock attributable to each department
- C.only the business's own combined, overall stock figure, with no departmental split
- D.a factor entirely unrelated to the quantity or value of departmental stock
Show the answer
B. the quantity and value of stock attributable to each department
Separate departmental stock records specifically help a business track the quantity and value of stock attributable to each department.
- Practice question 2
Where a department's own direct expenses cannot be easily separated from shared expenses, specifically
- A.an estimated or agreed basis of apportionment must be used
- B.no particular basis of any kind is actually required, despite the difficulty described
- C.the expense must be charged entirely to a single, randomly chosen department
- D.a factor entirely unrelated to an estimated or agreed basis of apportionment
Show the answer
A. an estimated or agreed basis of apportionment must be used
Where direct expenses cannot easily be separated from shared expenses, specifically an estimated or agreed basis of apportionment must be used.
- Practice question 3
Total business expenses of ₦40,000 are shared between two departments in the ratio 3:1. The department with the larger share receives
- A.₦40,000
- B.₦10,000
- C.₦20,000
- D.₦30,000
Show the answer
D. ₦30,000
Larger share = 40,000 x (3/4) = ₦30,000.
More UTME Accounts topics
- Nature and Significance of Bookkeeping and Accounting
- Principles of Double Entry
- Ethics in Accounting
- Cash Book
- Bank Transactions and Reconciliation Statements
- Final Accounts of a Sole Trader
- Stock Valuation
- Control Accounts and Self-Balancing Ledgers
- Incomplete Records and Single Entry
- Manufacturing Accounts
- Accounts of Not-For-Profit-Making Organizations
- Branch Accounts
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