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WAEC Financial Accounting 2009 Question 7

Question 7

Departmental Accounts

Rent is apportioned to each department on the basis of

  1. A.area or space occupied
  2. B.equality
  3. C.turnover
  4. D.purchases
Show the answer and explanation

Answer: A (area or space occupied)

Explanation

Rent is paid for space, so each department bears rent in proportion to the floor area it uses.