The Following Information Relates to Nebula Ltd Calculate the Profit

question 37

Multiple Choice

The following information relates to Nebula Ltd.
$$\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 230,000 \\\hline \text { Cost of sales } & 150,000 \\\hline \text { Interest revenue } & 10,000 \\\hline \text { Operating expenses } & 40,000 \\\hline \text { Sales discounts } & 20,000 \\\hline \text { Sales returns and allowances } & 7000 \\\hline\end{array}$$
Calculate the profit.

• A) $230,000
• B) $13,000
• C) $23,000
• D) $70,000

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Definitions:

Note Payable

A written promise to pay a specific amount of money, usually with interest, at a future date.

Interest Incurred

The cost of borrowing money, represented as the amount charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage of the principal.

Discounted Note

A promissory note or bond sold at a price lower than its face value, which will pay the face value at maturity.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the correct period.