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- It acquires permanent capital as ordinary shares are not redeemable
- It is not obliged to pay dividends, thus no pressure from shareholders
- Ploughing back is possible instead of distributing the profits
- Ordinary shareholders are paid last in case the company is winding up
gideon1 answered the question on October 1, 2017 at 14:32
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Date posted: October 1, 2017. Answers (1)
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(i)During the year,proprietor surrendered his private car valued at sh.400000 to the business
(ii)During the year ,the proprietor had taken goods worth sh 13500 per month for his own use
(iii)The business made a profit of sh 102,000
Calculate the owner’s equity at the end of the year.
Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Identify the type of error described below.
Description Type
i) Credit purchase of sh.78,000 was recorded as sh.
87,000 in both purchases and creditors accounts.
ii) Sale of goods on credit to Ntari sh. 18,000 was
debited in Ntati’s account
iii) Payment of salary sh.13,500 was debtited in the cash
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Date posted: October 1, 2017. Answers (1)
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Description Type
i) Arises when people are physically
challenged
ii) Arises out of mismatch between
the skills possessed by potential
employees and the job
opportunities available
iii) Caused by alternating trade
patterns occurring at similar times
over the years
iv) Arises when there is change in
methods of production
Date posted: October 1, 2017. Answers (1)
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Identify the insurance terms described below.
Description Term
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policy to another person
ii) Insuring same subject for the
same risk with more than one
insurance company
iii) Regular payments for insurance
cover
iv) Refund received on cancellation
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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Date posted: October 1, 2017. Answers (1)
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State the term that is used for each of the following statements
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space for locals to borrow from
(b) Debts Incurred by the government to finance activities that do not generate revenue at all at
any time
(c) Government expenditure which is incurred all the time on a regular basis
(d) Type of tax paid by companies based on profits
Date posted: October 1, 2017. Answers (1)