Angel Limited Develops and Sells Off-The-Shelf Accounting Software Packages

question 26

Multiple Choice

Angel Limited develops and sells off-the-shelf accounting software packages. The retail price of each package is $550 (GST inclusive) . Included with each package sold are 'free' upgrades for a period of 12 months from the date of sale. These upgrades can be purchased separately for $66 (GST inclusive) . At the date of sale, Angel should record revenue of:

• A) $440.00.
• B) $484.00.
• C) $550.00.
• D) $616.00.

Calculate the effective interest rate on loans and understand its impact on financing decisions.

Understand the role of working capital in the operational efficiency of a business.

Identify the types of short-term financing and their appropriate applications.

Analyze the strategies for managing receivables and the implications on cash flow.

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Definitions:

Vagrancy

The state of wandering from place to place without a permanent home or employment, often associated with homelessness.

Personal Problems

Issues or difficulties that are specific to an individual's life circumstances, often impacting their mental or physical well-being.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group, including language, religion, cuisine, social habits, music, and arts.

Binge Drinking

The consumption of an excessive amount of alcohol in a short period, often leading to intoxication.