Holidays Ltd Manufactures Caravans

question 5

Multiple Choice

Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2016 were as follows:

What was the reported profit for the year ended 30 June 2016 if revenue was recognised at the point of sale?

• A) $4 750 000
• B) $5 000 000
• C) $6 000 000
• D) $2 000 000

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Definitions:

Germinal Period

The initial two weeks of prenatal development after conception, characterized by rapid cell division and the beginning of cell differentiation.

Blastocyst

An early stage of embryonic development that consists of a sphere of cells surrounding a fluid-filled cavity.

Embryo

The early stage of development in multicellular organisms, in humans this phase extends from the second to the eighth week of gestation.

Embryonic Layers

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in an embryo that develop into different organs and tissues.