Which of the Following Entries or Sets of Entries Would $\begin{array}{lrr} \text { Debtors.} &200,000\\ \text {Sales. } &200,000\\\end{array}$

question 32

Multiple Choice

Which of the following entries or sets of entries would record sales for the month of July of goods costing £119,000 for £200,000:
A. $\begin{array}{lrr} \text { Debtors.} &200,000\\ \text {Sales. } &200,000\\\end{array}$


b. $\begin{array}{lrr} \text { Debtors } &20,000\\ \text {Sales } &200,000\\ \text {Cost of Goods Sold } &119,000\\ \text {Work in Process } &119,000\\\end{array}$
c. $\begin{array}{lrr} \text { Cost of Goods Sold } &119,000\\ \text { Net Operating Income } &81,000\\ \text { Sales } &200,00\end{array}$
d. $\begin{array}{lrr} \text {Debtors } &200,000\\ \text {Sales } &200,000\\ \text { Cost of Goods Sold } &119,000\\ \text {Finished Goods } &119,000\\\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Fair Value Adjustment

Fair value adjustment is an accounting process to adjust the book value of assets or liabilities to their fair value.

Security Portfolio

A collection of investments held by an individual or an institution which may include stocks, bonds, mutual funds, or other investments.

Accounting Period

A time frame for which financial statements are prepared, typically a year, quarter, or month, to measure a company's financial performance.

Other Expenses

Costs that do not directly relate to the main business activities, such as administrative and organizational expenses.