Accounting and Finance
A firm makes up its annual accounts to 30 April. Included in the ledger account balances on 1 May 2018 was insurance (debit) $800. 0n 31 October 2018 the annual insurance premium of $2 100 became due and was paid. What amount is charged for insurance in the Income statement for the year ended 30 April 2019?
$1 050
$1 850
$2 100
$2 900
$1 850
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C. It is overstated by $8 000
D. It is understated by $8 000
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A. credit sale of goods
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A company makes furniture What will be treated as a direct cost in the company’s manufacturing account?
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D. wages of workers maintaining the factory machinery
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