Purchase Solution

Business accounting questions analysis

Not what you're looking for?

Ask Custom Question

The following information relates to a business for a period.
Selling price per unit: 100; Variable costs per unit: 60; Total fixed costs: 90,000; Net profit: 15,000. How many units were sold in the period?

(Please see attachment for full question)

Attachments
Purchase this Solution

Solution Summary

Accounting, business analysis and finance is examined for variable costs per unit. A sales ledger control accounts are examined.

Solution Preview

2
I The following information relates to a business for a period.
$
selling price per unit
100 ($100 - $60)X - $90,000 = $15,000
variable costs per unit
60 Where X equals the number sold.
total fixed costs
90 000 You can plug in the 4 answers to find which one is right.
net profit
15 000
How many units were sold in the period?
A 1500 B 1750 C 2250 D 2625
2 A customer paid a deposit in advance for goods to be supplied at a later date. How should this be recorded in the seller's books?
Debit Credit
A Cash Customer
B Cash Sales
C Customer Prepayment
D Customer Sales

I would answer D because you would debit (increase) the customers account and credit (reduce) sales.
Once the product is shipped, you would do the opposite and thereby increase sales.

3 A trial balance at 30 April 2003, before making end of year adjustments, showed:
debit Credit

Trade debtors $17,800
Provision for doubtful debts $580
200
Provision of 2% of trade debtors $360
- ($800) $940 Total Answer is C

At 30 April 2003 it was decided to write off a bad debt of $800 and to make a provision for
doubtful debts of ...

Purchase this Solution


Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.