Which of the following is sent by the buyer to the seller indicating full description and quantity of goods…

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Which of the following is sent by the buyer to the seller indicating full description and quantity of goods required?

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52. Which of the following is sent by the buyer to the seller indicating full description and quantity of goods required?
An order is a document from a buyer to a seller specifying the goods or services required, including their description and quantity.
D) Order

53. The principle of insurance which states that a person can only insure properties that will bring loss to him upon destruction is
The principle of insurable interest means that the policyholder must stand to suffer a financial loss if the insured property is damaged or destroyed.
C) insurable interest

54. An order written by the drawer to a bank to pay on demand a specified amount of money to the person named as payee is
This is the definition of a cheque, which is a written order to a bank to pay a specified sum of money from the drawer's account to the payee.
B) cheque

55. Calculate the turnover.
Turnover refers to net sales.

Identify sales and return inwards.
Sales = N85,000
Return inwards = N5,000
Calculate net sales (turnover).
$\text{Turnover} = \text{Sales} - \text{Return inwards}$ $\text{Turnover} = \text{N}85,000 - \text{N}5,000$ $\text{Turnover} = \text{N}80,000$
The turnover is N80,000.
D) N80,000

56. Calculate the average stock.
Average stock is calculated as the sum of opening and closing stock divided by two.
Identify opening and closing stock.
Opening stock = N25,000
Closing stock = N10,000
Calculate average stock.
$\text{Average Stock} = \frac{\text{Opening Stock} + \text{Closing Stock}}{2}$ $\text{Average Stock} = \frac{\text{N}25,000 + \text{N}10,000}{2}$ $\text{Average Stock} = \frac{\text{N}35,000}{2}$ $\text{Average Stock} = \text{N}17,500$
The average stock is N17,500.
C) N17,500

57. Calculate the net profit.
To calculate net profit, we first find the cost of goods sold (COGS), then gross profit, and finally net profit.
Calculate Cost of Goods Sold (COGS).
$\text{COGS} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock}$ $\text{COGS} = \text{N}25,000 + \text{N}30,000 - \text{N}10,000$ $\text{COGS} = \text{N}55,000 - \text{N}10,000$ $\text{COGS} = \text{N}45,000$
Calculate Gross Profit.
Net Sales (Turnover) = N80,000 (from Q55)
$\text{Gross Profit} = \text{Net Sales} - \text{COGS}$ $\text{Gross Profit} = \text{N}80,000 - \text{N}45,000$ $\text{Gross Profit} = \text{N}35,000$
Calculate Net Profit.
Expenses = N10,000
$\text{Net Profit} = \text{Gross Profit} - \text{Expenses}$ $\text{Net Profit} = \text{N}35,000 - \text{N}10,000$ $\text{Net Profit} = \text{N}25,000$
The net profit is N25,000.
B) N25,000

58. A market which consists of businesses that purchase products for profit making is ____ market.
An industrial market consists of businesses that buy goods and services for use in their own production processes, for resale, or for use in their operations, all with the aim of making a profit.
B) industrial

Which of the following is sent by the buyer to the seller indicating full description and quantity of goods required?

Step-by-step solution

Identify sales and return inwards.

Calculate net sales (turnover).

Identify opening and closing stock.

Calculate average stock.

Calculate Cost of Goods Sold (COGS).

Calculate Gross Profit.

Calculate Net Profit.

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