Opec Ltd Manufactures Crystal Balls

question 12

Multiple Choice

Opec Ltd manufactures crystal balls.Transactions for year ended 31 December 2016 were as follows: What was the reported profit for the year 2016?

• A) $100 000
• B) $140 000
• C) $180 000
• D) $350 000

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, including but not limited to utilities, rent, and salaries of support staff.

Accounts Payable

Accounts Payable represents a company's obligations to pay off a short-term debt to its creditors or suppliers within a given time frame.

Private Placement

A means of raising capital through the sale of securities to a small number of select investors rather than through a public offering.

Initial Public Offering

The process by which a private company becomes publicly traded by offering its shares to the public for the first time.