Use the Information Below to Answer the Following Questions:
the

question 45

Multiple Choice

Use the information below to answer the following questions:
The following information is taken from the accounts of Ray Ltd.
$\begin{array}{llcc}&\$\\ \text { Motor vehicles, 1 January 2012 } &620000 \\ \text {Motor vehicles, 31 December 2012 } &740000\\ \text {Accumulated depreciation } &\\ \text { - Motor vehicles, 1 January 2012 } &230000\\ \text {Accumulated depreciation } &\\ \text { - Motor vehicles, 31 December } &290000\\ \text {Depreciation expense } &\\ \text {- Motor vehicles, year ended 31 December 2012 } &1500\\ \text { Gain on sale of motor vehicle, } &\\ \text { year ended 31 December} &10000\\ \text { Acquisition of motor vehicles financed by loan} &\\ \text {to be paid in 5 years' time } &170000\\ \text { Cost price motor vehicles sold during the year } &130000\\\end{array}$


-What was the value of motor vehicles purchased for cash?

• A) $140 000
• B) $190 000
• C) $250 000
• D) $80 000.

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Definitions:

Margarine

A butter substitute made from vegetable oils or animal fats, often used in cooking or as a spread.

Inelastic

A characteristic of a good or service whose quantity demanded or supplied changes by a smaller percentage than changes in price.

Sensitive

Capable of perceiving with the senses or responsive to stimuli or changes in the environment.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay a price.