ACC313 ONLY ANSWERS
1 incremental cost
2 Total cost
3 standard cost
4 direct lab our  x
4 direct expenses x
5 flexible
6 compulsory
7 batch costing
8 cost of idleness
9 cost accounting
10 it takes to produce goods or operates a business.

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1.  The nominal capital of the company is the
Ans:  Authorised share Capital

2.  Jacuzi Partnership made a profit of a 500,000 in 2016, 300,000 in 2017 and 400,00 in 2018. Calculate the goodwill if goodwill is valued at 2 years purchase of average profit.
Ans: 800,000

3.  _ arises from acquisition of business by another but is generated internally.
Ans: Inherent goodwill

4.  Where the company is issuing additional shares to existing shareholders to subscribe to on a pro-rata basis is
Ans: A right issue

5.  The formation of a new business which then acquires the assets and liabilities of the two or more existing businesses which are then liquidated is
Ans: Amalgamation

6.  A company whose liabilities are limited to the amount invested in the business in the event of liquidation is a company__
Ans: Limited by Shares

7.  The shares which entitle its holders to dividend whether or not the company makes profit is
Ans: Cummulative Prefrence shares

8.  A document which states the internal regulations of a limited company is:
Ans: The Articles of Association

9.  The amount by which the value of a business exceeds the value of all its net assets is called:
Ans: Goodwill

10.  Amounts set aside out of profits earned by a company which are not designed to meet any liability or contingency is known as a _
Ans: Reserve

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1.  The nominal capital of the company is the
Ans:  Authorised share Capital

2.  Jacuzi Partnership made a profit of a 500,000 in 2016, 300,000 in 2017 and 400,00 in 2018. Calculate the goodwill if goodwill is valued at 2 years purchase of average profit.
Ans: 800,000

3.  ___ arises from acquisition of business by another but is generated internally.
Ans: Inherent goodwill

4.  Where the company is issuing additional shares to existing shareholders to subscribe to on a pro-rata basis is
Ans: A right issue

5.  The formation of a new business which then acquires the assets and liabilities of the two or more existing businesses which are then liquidated is
Ans: Amalgamation

6.  A company whose liabilities are limited to the amount invested in the business in the event of liquidation is a company__
Ans: Limited by Shares

7.  The shares which entitle its holders to dividend whether or not the company makes profit is
Ans: Cummulative Prefrence shares

8.  A document which states the internal regulations of a limited company is:
Ans: The Articles of Association

9.  The amount by which the value of a business exceeds the value of all its net assets is called:
Ans: Goodwill

10.  Amounts set aside out of profits earned by a company which are not designed to meet any liability or contingency is known as a _
Ans: Reserve