A Business Shows the Following Figures for the Current Financial

question 15

Multiple Choice

A business shows the following figures for the current financial year (all amounts in $millions) :
$$\begin{array} { l r } \text { Total sales } & \$ 38.0 \\\text { Operating profit } & \$ 12.0 \\\text { (a) Bad debts expense } & \$ 1.0 \\\text { (b) Interest expense } & \$ 2.0 \\\text { (c) Auditor's remuneration } & \$ 0.5 \\\text { (d) Repairs and maintenance expense } & \$ 2.5\end{array}$$ The items that are most likely to be considered as material are:

• A) (b) and (d)
• B) (a), (b) and (d)
• C) (b), (c) and (d)
• D) (a) and (b)

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Definitions:

Substitute Goods

Products or services that can serve as replacements for each other; when the price of one increases, the demand for the alternative is likely to increase.

Time Available

The total hours or minutes that can be allocated to certain activities or tasks within a given period.

Price-Elastic

Refers to a situation where the demand for a product changes significantly in response to a change in price.

Bayer Aspirin

A brand of aspirin produced by Bayer AG, known for its pain-relieving, fever-reducing, and anti-inflammatory properties.