Department Account objective 2

In departmental accounts, what items are shown separately for each department in the financial position statement

• net profit

• inventory

• account receivable

• cash at bank

The purpose of preparing a Departmental Income Statement is to

• estimate the firm's future cash requirements

• ensure that discount allowed does not exceed discount received

• show the relative financial performance of different departments

• ensure that all likely bad debts are provided for

In departmental account, which of the following expenses that need to be apportioned to their respective departments

I. Building rent

II. Water and electricity

III. Departmental Staff Salaries

IV Building insurance

• I, II , III

• I, II, IV

• I, III, IV

• I, II , III, IV

Sin Min operates its business by spread into 2 department.

During 2020, Department A transferred goods RM 2000 to Department B for resale.

What was the double entry should Sin Min made ?

• Debit Purchases - Department A

  Credit Purchases - Department B

• Debit Purchases - Department B

  Credit Purchases - Department A

• Debit Purchases - Department A

  Credit Sales - Department B

• No entries should be made

A company operates business in 2 departments, and incurred RM24000 rentals in total.

Which of the following apportionment approaches is the most suitable for rental expenses appropriation ?

• Number of employees

• floor space

• volume of sales

• volume of purchases

Sin Min , a trader opens a cafe to serve tea and coffee and desserts . In the cafe , also selling related accessories products like tea pots and tea.

Which of the following divisions/department suitalble for Sin Min to runs his business ?

• Drinks and Food Department , Accessories Department

• Food Department , Drinks Department

• Accessories Department, Tea pots Department

• Tea Department , Dessert Department