XYZ Ltd's Financial Information Includes the Following

question 43

Multiple Choice

XYZ Ltd's financial information includes the following.
Sales $100 000
Accounts receivable balance 1 July 15 30 000
Accounts receivable balance 30 June 16 35 000
Bad debts written off [*] 1 000
Discount allowed 5 000
[*] The journal entry for bad debts written off debited bad debts expense $1000 and credited accounts receivable $1000 (direct write-off method) .
The cash received from customers for the year ended 30 June 16 was:

• A)$89 000.
• B)$91 000.
• C)$94 000.
• D)$101 000.

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Definitions:

Production Possibilities Curves

A graphical representation showing the maximum combination of goods and services that can be produced within a set timeframe with available resources.

Trading Possibilities Curves

A graphical representation depicting the range of goods and services that a country can produce and trade given its resources and technology.

Substitutability

The degree to which one product or service can be replaced by another to satisfy the same need or want.

Comparative Advantage

Comparative advantage refers to the ability of an entity to produce a good or service at a lower opportunity cost compared to others.