Midpoint Ltd Provided the Following Information for the Year Ended

question 28

Multiple Choice

Midpoint Ltd provided the following information for the year ended 30 June 2016.
Revenue $195 000
Accounts receivable 1 July 2015 20 000
Accounts receivable 30 June 2016 30 000
Bad debts written off during the year* 6 000
* Direct method (debit bad debts expense $6000; credit accounts receivable $6000) .
Cash receipts from customers for the year ending 30 June 2016 were:

• A)$195 000.
• B)$179 000.
• C)$185 000.
• D)$191 000.

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Definitions:

Product Knowledge

The understanding and information a company or individual has about a product’s features, benefits, application, and use.

Demographic Segmentation

The process of dividing a market into segments based on demographic factors such as age, gender, income, education, and ethnicity to better target marketing efforts.

Lifestyle

A way of life or style of living that reflects the attitudes and values of a person or group.

Segmentation Bases

Criteria used to divide a market into discrete customer groups based on shared characteristics.