Use the Information Below to Answer the Following Questions

question 54

Multiple Choice

Use the information below to answer the following questions:
Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2012 were as follows:
(i) 1200 caravans were manufactured at a cost of $15 000 each.
(ii) 1000 caravans were sold for $20 000 each.
(iii) Cash was collected on 950 of the caravans sold.
-What was the reported profit for the year ended 30 June 2012 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:

Personal Growth

The process of improving self-awareness, developing talents, and refining personal qualities to enhance the quality of life.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, depicting a five-tier model of human needs, arranged in a pyramid, with physiological needs at the bottom and self-actualization at the top.

Esteem

The respect and admiration that an individual is regarded with by others; also refers to one's self-regard or self-respect.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone, and the highest level of Maslow's hierarchy of needs.