Opec Ltd Manufactures Crystal Balls

question 17

Multiple Choice

Opec Ltd manufactures crystal balls. Transactions for year ended 31 December 2018 were as follows: What was the reported profit for the year 2018?

• A) $100 000
• B) $140 000
• C) $180 000
• D) None of the above

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Definitions:

Permanent/Temporary

Describes items or accounts within financial accounting that either persist over time (permanent) or are expected to be concluded within a certain period (temporary).

Normal Balance

The side (debit or credit) on which entries increase an account's balance, based on the accounting equation.

Financial Statement

A written record that conveys the financial activities and conditions of a business or individual, typically including the balance sheet, income statement, and cash flow statement.

Permanent/Temporary

This refers to the nature of employment or status of objects wherein 'permanent' indicates indefinite duration and 'temporary' indicates a fixed duration.