Bankstown Limited Was Involved in a Highly Successful Plastics Manufacturing

question 14

Multiple Choice

Bankstown Limited was involved in a highly successful plastics manufacturing business. It commenced a project to design a more efficient extrusion system for its plastic pipes. The following outlays occurred: September: researcher salaries $30 000; October: research materials $40 000; November: re-development of the extrusion plant $250 000; December: final adjustments to the extrusion plant $25 000. The amount to be expensed by Bankstown Limited at the end of the financial year, 31 December, is:

• A) $30 000
• B) $70 000
• C) $250 000
• D) $275 000

Understand the purpose and types of journal entries in accounting.

Calculate a company's current ratio and interpret its significance.

Analyze an income statement to determine net income or net loss.

Compute a company's working capital and understand its importance in assessing financial health.

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Definitions:

Internal Balancing Agent

A material used inside tires or other rotating components to automatically distribute weight evenly and reduce vibration.

Axle Ends

The extremities of an axle to which wheels, gears, or other components are fixed, facilitating rotation and movement.

Safety Cage

A protective framework designed to enclose machinery, equipment, or areas to prevent access by unauthorized personnel and protect them from harm.

Tire Pressure

The measure of air pressure within a tire, typically measured in pounds per square inch (PSI) or bars, crucial for vehicle safety and efficiency.