Accounting and Finance
In 2000 a business paid $3 000 for electricity. On 1 January 2018 $600 was owed for electricity. On 31 December 2018 $1 300 was owed for electricity. How much is charged for electricity in the Income statement for 2018?
$3 000
$3 600
$3 700
$4 300
$3 700
Related posts
An electricity accrual of $450 is treated as a prepayment when preparing a trader’s Profit and Loss account. What effect does this have on the trade/’s net profit?A. It is overstated by $450
B. It is understated by $450
C. It is overstated by $900
D. It is understated by $900
How is the factory cost of production calculated?
A. direct labour + direct material
B. direct labour + factory overheads
C. direct material + direct labour + factory overheads
D. direct material + direct labour + total overheads
In a trading section of income statement, closing inventory of $4 000 has been added to opening inventory and purchases. What is the effect of this on gross profit?
A. It is overstated by $4 000
B. It is understated by $4 000
C. It is overstated by $8 000
D. It is understated by $8 000
Which transaction is entered in the general journal?
A. credit sale of goods
B. goods returned to supplier
C. purchase of a non-current asset on credit
D. purchase of inventory for cash
A company makes furniture What will be treated as a direct cost in the company’s manufacturing account?
A. depreciation of vehicles that deliver the furniture
B. insurance of the machinery used to make the furniture
C. transport costs of bringing in the raw materials to make the furniture
D. wages of workers maintaining the factory machinery
Which of the following is an expense account?
A. Sales
B. Cash
C. Janitorial receivable
D. Accounts payable
A social club’s records for a year show: What is the total net income for the year?
A. $8 000
B. $9 800
C. $10 000
D. $12 000
Leave a Reply