Given Only the Following Information,how Much Revenue Would P Ltd

question 10

Multiple Choice

Given only the following information,how much revenue would P Ltd recognise in April 2016? (i) Received a deposit in April from a client for $80 000 for work to be carried out during May.
(ii) Credit sales of $150 000 in April,only $50 000 to be collected in April.
(iii) Collected $20 000 in April from customers for March sales.
(iv) Sold client goods valued at $30 000 on last day of April,will invoice client in early May.
(v) Signed contract to deliver client goods valued at $40 000 in May.

• A) $130 000
• B) $180 000
• C) $200 000
• D) $260 000

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Definitions:

Cash Operating

Cash operating activities involve the cash inflows and outflows directly related to the core business operations, such as revenue from sales and payments to suppliers.

Useful Life

The estimated duration of time a fixed asset is expected to be useful for its intended purpose.

Automating

The process of implementing systems and technology to perform tasks without human intervention, often to improve efficiency and accuracy.

Operating Expenses

Costs incurred in the regular functioning of a business, excluding direct production costs; these may include rent, utilities, and administrative salaries.