Sales – NBC Institute

MI – Nov 2020 – L1 – SB – Q1 – Budgeting

Prepare the cash budget for the first three months of the year based on provided sales, expenses, and additional company details.

Question

WXYZ is preparing for the first half of the next year. The following information was available:

a. Sales – 15% of monthly sales are in cash, while the balance is sold on credit. Collections from receivables are 50% in the first month after sales, 30% in the second month, and the balance in the third month after sales.
b. Purchases are usually 55% of sales and paid in the month of purchase.
c. Insurance company is expected to pay the sum of N525,000 in February based on the company’s accidented vehicles.
d. Salary deductions are paid on a preceding-month basis.
e. Company income tax of N475,550 will be paid in March.
f. Cash and cash equivalent balance as at December is N502,760.
g. Bank charges are 1% of total payments for the month.
h. Additional Information:

Month	October (N)	November (N)	December (N)	January (N)	February (N)	March (N)
Sales	750,000	600,000	850,000	520,000	670,000	800,000
Net Salaries	230,000	200,000	250,000	210,000	240,000	270,000
Other Expenses	200,700	187,500	197,500	177,200	187,500	192,700
Salaries Deductions	29,400	28,400	39,400	28,700	32,750	27,650

Required:
Prepare the cash budget for the first three months of the year. (Total 20 Marks)

Answer

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Tags: Cash Budget, Forecasting, Payables, Purchases, Receivables, Sales
Level: Level 1

Topic: Budgeting
Series: NOV 2020

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

Question

Goods sold on cash and carry basis returned by a customer is treated in the account by:

A. Debiting Sales and Crediting Cash
B. Debiting Sales and Crediting Accounts Payable
C. Debiting Inventory and Crediting Cash
D. Debiting Inventory and Crediting Bank
E. Debiting Sales and Crediting Accounts Receivable.

Answer

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Tags: Inventory, Returns, Sales
Level: Level 1

TAX – Nov 2021 – L2 – Q3a – Value Added Tax (VAT)

Calculation of total VAT payable by Adegboyega Enterprises to the Federal Inland Revenue Service (FIRS) for product sales.

Question

Adegboyega Enterprise is a manufacturing outfit based in Jankara, Lagos State. In 2020, the company sold its vatable product to a wholesaler, Ikeja Venture, for N3,500,000. The wholesaler sold the products to a retailer, Mrs. Adeosun, for N4,900,000, who finally sold it to consumers for N6,300,000 (VAT inclusive). Assume there was no closing inventory at each stage of the transaction.

Required:
a. Compute the total VAT payable to the Federal Inland Revenue Service by Adegboyega Enterprises on the transactions stated above.

Answer

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Tags: Manufacturing, Sales, Taxable Goods, VAT, VAT Computation
Level: Level 2

Topic: Value-Added Tax (VAT)
Series: NOV 2021

FA – Nov 2012 – L1 – SB – Q34 – Accounting Concepts

Recognize the accounting concept for sales revenue recognition.

Question

The accounting concept which states that sales revenue should be recognized when goods and services have been received is known as?

Answer

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Tags: Accounting Concepts, Revenue, Sales
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2012

FA – Nov 2012 – L1 – SA – Q26 – Recording Financial Transactions

Identifying an alternative source for computing credit sales in the absence of a sales day book.

Question

In the absence of a Sales Day Book or Sales Account, credit sales can be computed from:

Answer

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Tags: Books of Prime Entry, Credit Sales, Sales
Level: Level 1

FA – Nov 2012 – L1 – SA – Q25 – Recording Financial Transactions

Identifying the document used to acknowledge returned goods.

Question

The document used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as:

Answer

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Tags: Credit Note, Returned Goods, Sales
Level: Level 1

FA – Nov 2012 – L1 – SA – Q11 – Sale of Goods

Calculating the commission based on gross sales.

Question

Apple Foods Limited sells goods supplied by Gold Foods Plc at a fixed price calculated to give a gross profit margin of 50%. Apple Foods, being an agent, receives a commission of 12.5% of the gross sales made by it. During the period ending 31 October 2012, Apple Foods sold goods costing N184,000. The commission receivable by Apple Foods will be:

A. N4,600
B. N23,000
C. N46,000
D. N184,000
E. N368,000

Answer

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Tags: Commission, Gross Profit Margin, Sales
Level: Level 1

Topic: Sale of Goods
Series: NOV 2012

QTB – Nov 2015 – L1 – SA – Q13 – Statistics

This question asks for the calculation of the 3-day moving average for a given data set.

Question

he table below shows the quantity of newspapers sold daily in a week by a vendor:

Days of the Week	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Quantity Sold	550	450	500	370	420	620	490

The 3-day moving average corresponding to Friday is:

A. 400
B. 430
C. 470
D. 550
E. 570

Answer

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Tags: Forecasting, Moving Average, Sales
Level: Level 1

Topic: Statistics
Series: NOV 2015

MI – Nov 2022 – L1 – SA – Q5 – Cost-Volume-Profit Analysis

Calculation of the Profit Volume (PV) ratio based on sales and contribution

Question

If sales increase from ₦80,000 to ₦100,000 and contribution increases by ₦4,000, what is the PV ratio?
A. 10%
B. 12%
C. 15%
D. 20%
E. 25%

Answer

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Tags: Contribution margin, Cost-Volume-Profit, PV Ratio, Sales
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: NOV 2022

FA – Nov 2022 – L1 – SA – Q12 – Recording Financial Transactions

Identify the source document for the sales day book.

Question

A source document for the sales day book is
A. Invoice
B. Cheque stub
C. Customer advice
D. Credit advice
E. Requisition form

Answer

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Tags: Financial Transactions, Sales, Source Documents
Level: Level 1

MI – Nov 2020 – L1 – SB – Q1 – Budgeting

Prepare the cash budget for the first three months of the year based on provided sales, expenses, and additional company details.

Question

WXYZ is preparing for the first half of the next year. The following information was available:

Month	October (N)	November (N)	December (N)	January (N)	February (N)	March (N)
Sales	750,000	600,000	850,000	520,000	670,000	800,000
Net Salaries	230,000	200,000	250,000	210,000	240,000	270,000
Other Expenses	200,700	187,500	197,500	177,200	187,500	192,700
Salaries Deductions	29,400	28,400	39,400	28,700	32,750	27,650

Required:
Prepare the cash budget for the first three months of the year. (Total 20 Marks)

Answer

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Tags: Cash Budget, Forecasting, Payables, Purchases, Receivables, Sales
Level: Level 1

Topic: Budgeting
Series: NOV 2020

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

Question

Goods sold on cash and carry basis returned by a customer is treated in the account by:

Answer

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Tags: Inventory, Returns, Sales
Level: Level 1

TAX – Nov 2021 – L2 – Q3a – Value Added Tax (VAT)

Calculation of total VAT payable by Adegboyega Enterprises to the Federal Inland Revenue Service (FIRS) for product sales.

Question

Required:
a. Compute the total VAT payable to the Federal Inland Revenue Service by Adegboyega Enterprises on the transactions stated above.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Manufacturing, Sales, Taxable Goods, VAT, VAT Computation
Level: Level 2

Topic: Value-Added Tax (VAT)
Series: NOV 2021

FA – Nov 2012 – L1 – SB – Q34 – Accounting Concepts

Recognize the accounting concept for sales revenue recognition.

Question

The accounting concept which states that sales revenue should be recognized when goods and services have been received is known as?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Revenue, Sales
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2012

FA – Nov 2012 – L1 – SA – Q26 – Recording Financial Transactions

Identifying an alternative source for computing credit sales in the absence of a sales day book.

Question

In the absence of a Sales Day Book or Sales Account, credit sales can be computed from:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Books of Prime Entry, Credit Sales, Sales
Level: Level 1

FA – Nov 2012 – L1 – SA – Q25 – Recording Financial Transactions

Identifying the document used to acknowledge returned goods.

Question

The document used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Credit Note, Returned Goods, Sales
Level: Level 1

FA – Nov 2012 – L1 – SA – Q11 – Sale of Goods

Calculating the commission based on gross sales.

Question

A. N4,600
B. N23,000
C. N46,000
D. N184,000
E. N368,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Commission, Gross Profit Margin, Sales
Level: Level 1

Topic: Sale of Goods
Series: NOV 2012

QTB – Nov 2015 – L1 – SA – Q13 – Statistics

This question asks for the calculation of the 3-day moving average for a given data set.

Question

he table below shows the quantity of newspapers sold daily in a week by a vendor:

Days of the Week	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Quantity Sold	550	450	500	370	420	620	490

The 3-day moving average corresponding to Friday is:

A. 400
B. 430
C. 470
D. 550
E. 570

Answer

Find Related Questions by Tags, levels, etc.

Tags: Forecasting, Moving Average, Sales
Level: Level 1

Topic: Statistics
Series: NOV 2015

MI – Nov 2022 – L1 – SA – Q5 – Cost-Volume-Profit Analysis

Calculation of the Profit Volume (PV) ratio based on sales and contribution

Question

If sales increase from ₦80,000 to ₦100,000 and contribution increases by ₦4,000, what is the PV ratio?
A. 10%
B. 12%
C. 15%
D. 20%
E. 25%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contribution margin, Cost-Volume-Profit, PV Ratio, Sales
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: NOV 2022

FA – Nov 2022 – L1 – SA – Q12 – Recording Financial Transactions

Identify the source document for the sales day book.

Question

A source document for the sales day book is
A. Invoice
B. Cheque stub
C. Customer advice
D. Credit advice
E. Requisition form

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Transactions, Sales, Source Documents
Level: Level 1

Question Tag: Sales

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MI – Nov 2020 – L1 – SB – Q1 – Budgeting

Prepare the cash budget for the first three months of the year based on provided sales, expenses, and additional company details.

You're reporting an error for "MI – Nov 2020 – L1 – SB – Q1 – Budgeting"

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

You're reporting an error for "FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions"

TAX – Nov 2021 – L2 – Q3a – Value Added Tax (VAT)

Calculation of total VAT payable by Adegboyega Enterprises to the Federal Inland Revenue Service (FIRS) for product sales.

You're reporting an error for "TAX – Nov 2021 – L2 – Q3a – Value Added Tax (VAT)"

FA – Nov 2012 – L1 – SB – Q34 – Accounting Concepts

Recognize the accounting concept for sales revenue recognition.

You're reporting an error for "FA – Nov 2012 – L1 – SB – Q34 – Accounting Concepts"

FA – Nov 2012 – L1 – SA – Q26 – Recording Financial Transactions

Identifying an alternative source for computing credit sales in the absence of a sales day book.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q26 – Recording Financial Transactions"

FA – Nov 2012 – L1 – SA – Q25 – Recording Financial Transactions

Identifying the document used to acknowledge returned goods.

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FA – Nov 2012 – L1 – SA – Q11 – Sale of Goods

Calculating the commission based on gross sales.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q11 – Sale of Goods"

QTB – Nov 2015 – L1 – SA – Q13 – Statistics

This question asks for the calculation of the 3-day moving average for a given data set.

You're reporting an error for "QTB – Nov 2015 – L1 – SA – Q13 – Statistics"

MI – Nov 2022 – L1 – SA – Q5 – Cost-Volume-Profit Analysis

Calculation of the Profit Volume (PV) ratio based on sales and contribution

You're reporting an error for "MI – Nov 2022 – L1 – SA – Q5 – Cost-Volume-Profit Analysis"

FA – Nov 2022 – L1 – SA – Q12 – Recording Financial Transactions

Identify the source document for the sales day book.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q12 – Recording Financial Transactions"

MI – Nov 2020 – L1 – SB – Q1 – Budgeting

Prepare the cash budget for the first three months of the year based on provided sales, expenses, and additional company details.

You're reporting an error for "MI – Nov 2020 – L1 – SB – Q1 – Budgeting"

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

You're reporting an error for "FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions"

TAX – Nov 2021 – L2 – Q3a – Value Added Tax (VAT)

Calculation of total VAT payable by Adegboyega Enterprises to the Federal Inland Revenue Service (FIRS) for product sales.

You're reporting an error for "TAX – Nov 2021 – L2 – Q3a – Value Added Tax (VAT)"

FA – Nov 2012 – L1 – SB – Q34 – Accounting Concepts

Recognize the accounting concept for sales revenue recognition.

You're reporting an error for "FA – Nov 2012 – L1 – SB – Q34 – Accounting Concepts"

FA – Nov 2012 – L1 – SA – Q26 – Recording Financial Transactions

Identifying an alternative source for computing credit sales in the absence of a sales day book.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q26 – Recording Financial Transactions"

FA – Nov 2012 – L1 – SA – Q25 – Recording Financial Transactions

Identifying the document used to acknowledge returned goods.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q25 – Recording Financial Transactions"

FA – Nov 2012 – L1 – SA – Q11 – Sale of Goods

Calculating the commission based on gross sales.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q11 – Sale of Goods"

QTB – Nov 2015 – L1 – SA – Q13 – Statistics

This question asks for the calculation of the 3-day moving average for a given data set.

You're reporting an error for "QTB – Nov 2015 – L1 – SA – Q13 – Statistics"

MI – Nov 2022 – L1 – SA – Q5 – Cost-Volume-Profit Analysis

Calculation of the Profit Volume (PV) ratio based on sales and contribution

You're reporting an error for "MI – Nov 2022 – L1 – SA – Q5 – Cost-Volume-Profit Analysis"

FA – Nov 2022 – L1 – SA – Q12 – Recording Financial Transactions

Identify the source document for the sales day book.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q12 – Recording Financial Transactions"

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