OPS Ltd Provided the Following Information for the Year Ended

question 7

Multiple Choice

OPS Ltd provided the following information for the year ended 30 June 2014.
Revenue $240 000
Accounts receivable 1 July 2013 30 000
Accounts receivable 30 June 2014 20 000
Bad debts written off during the year* 6 000
* Direct method debit bad debts expense $6 000; credit accounts receivable $6 000) .
Cash receipts from customers for the year ending 30 June 2014 were?

• A)$256 000
• B)$236 000
• C)$224 000
• D)$244 000

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Definitions:

Cash Flow Statement

A financial document summarizing the total cash received by a company from its operational activities and external investments, alongside all expenditures on operations and investments within a specific timeframe.

Equipment Account

An account on a company's balance sheet that reports the value of the company's equipment used in operations, less any accumulated depreciation.

Posting

The process of recording financial transactions in the ledger of a company as part of the accounting cycle.

Trial Balance

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.