Login Register


« | »


Waec GCE/Private Waec Exam


Financial Accounting 2 (Theory and Practice)

Financial Accounting 1 (Objective)

9:30am – 12:00noo

WAEC GCE ACCOUNTING
4a
Timing: Capital expenditures are charged to expense gradually via depreciation, and over a long period of time. Revenue expenditures are charged to expense in the current period, or shortly thereafter.
Consumption: A capital expenditure is assumed to be consumed over the useful life of the related fixed asset. A revenue expenditure is assumed to be consumed within a very short period of time.
Size: A more questionable difference is that capital expenditures tend to involve larger monetary amounts than revenue expenditures. This is because an expenditure is only classified as a capital expenditure if it exceeds a certain threshold value; if not, it is automatically designated as a revenue expenditure. However, certain quite large expenditures can still be classified as revenue expenditures, as long they are directly associated with revenue transactions or are period costs.

3ai) Amortization charges off the cost of an intangible asset, while depreciation does so for a tangible asset.

3aii) Amortization is almost always conducted on a straight-line basis, so that the same amount of amortization is charged to expense in every reporting period. Conversely, it is more common for depreciation expense to be recognized on an accelerated basis, so that more depreciation is recognized during earlier reporting periods than later reporting periods.

3aiii) The calculation of amortization does not usually incorporate any salvage value, since an intangible asset is not typically considered to have any resale value once its useful life has expired. Conversely, a tangible asset may have some salvage value, so this amount is more likely to be included in a depreciation calculation.

4b)

(i) Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period.

(ii) Revenue expenditures are the ongoing operating expenses, which are short-term expenses used to run the daily business operations.

WAEC GCE FIN.ACCCOUNTING ANSWER

2a)
i)purcahse of office equipment on credit-jounal
ii)credit purchases from supplier-sales day book
iii)bank charges paid-cash book
iv)goods returned by a customer-return inward book
v)goods returned to the suppliers-return outrned book
3ai) Amortization charges off the cost of an intangible asset, while depreciation does so for a tangible asset.
2b)
i)invoice:for recording cash sales
ii)debit note:for recording under payment
iii)credit note: recording goods for over payment
iv)receipt: to acknowledge or confirm the payment
v)petty cash voucher:for recording petty expense

Answer loading…………..

Gamvibes is the best blogging site that delivers answers earlier,we are legit and we assure you of success

Keep refreshing this page


No Responses Yet

Leave a Reply


NOTE:- After Dropping Comment Wait A While, Your Comment Will Appear After Moderation!!

« | »


Let's help you find!







Gamvibes is a Nigeria Online Public Site, Where Students Meet To Discuss and Gain Experience In All Educational Aspect.




Copyright 2021 Gamvibes Services.
Developed by Dave

%d bloggers like this: