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Waec Gce 2022 Second Series Financial Account Expo

Posted by on November 19, 2022 0


(3ai)
It is used to inform the buyer of current debt obligations

(3aii)
It is used to notify a buyer that credit is being applied to their account.

(3aiii)
It is used as a receipt whenever cash is withdrawn from a petty cash box.

(3aiv)
It provide documentation of services rendered and payment owed.

(3av)
It serves as backup documentation for cash transactions recorded in cash receipt and payment journals

(3b)
(i) Assets
(ii) Liabilities
(iii) Equity
(iv) Revenue
(v) Expenses

-EXPLANATION-
(i) Assets: These are items of economic benefit that are expected to yield benefits in future periods. Examples are accounts receivable, inventory, and fixed assets.

(ii) Liabilities: These are legally binding obligations payable to another entity or individual. Examples are accounts payable, taxes payable, and wages payable.

(iii) Equity: This is the amount invested in a business by its owners, plus any remaining retained earnings.

(iv) Revenue: This is an increase in assets or decrease in liabilities caused by the provision of services or products to customers. It is a quantification of the gross activity generated by a business. Examples are product sales and service sales.

(v) Expenses: This is the reduction in value of an asset as it is used to generate revenue. Examples are interest expense, compensation expense, and utilities expense.

(1a)
Prepayment is an accounting term for the settlement of a debt or installment loan in advance of its official due date. A prepayment may be the settlement of a bill, an operating expense, or a non-operating expense that closes an account before its due date.

(1b)
Accrual accounting is a financial accounting method that allows a company to record revenue before receiving payment for goods or services sold and record expenses as they are incurred. In other words, the revenue earned and expenses incurred are entered into the company’s journal regardless of when money exchanges hands.

(1c)
depreciation refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life. Depreciation represents how much of an asset’s value has been used. It allows companies to earn revenue from the assets they own by paying for them over a certain period of time.

(1d)
bad debt refers to an account receivable that has been specifically identified as uncollectible and, therefore, it is written off. Bad debt occurs when a borrower or debtor defaults – fails to repay his or her loan or debt. Such accounts are removed from the accounts receivable

(1e)
provision for doubtful debts is an estimated amount of bad debts that are likely to arise from the accounts receivable that have been given but not yet collected from the debtors. It is similar to the allowance for doubtful accounts.

 

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