The Following Information Was Extracted from the Financial Records of Pamakari

question 8

Multiple Choice

The following information was extracted from the financial records of Pamakari Limited: Equipment purchased on 1 July 2015 for $100 000 (accounting depreciation 10% straight line tax depreciation 20% straight line) . If the company tax rate is 30%, the deferred tax item that will be recorded by Pamakari Limited at 30 June 2016 is:

• A) debit Deferred tax asset $3000;
• B) credit Deferred tax asset $3000;
• C) debit Deferred tax liability $3000;
• D) credit Deferred tax liability $3000.

Calculate average collection period and understand its significance.

Understand the implications of a note receivable being honoured or dishonoured.

Analyze the liquidity of a company through the receivables turnover ratio.

Recognize important considerations and steps in managing accounts receivable.

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Definitions:

Withdrawal

Unpleasant and sometimes dangerous symptoms such as nausea, headache, or tremors experienced when an addictive substance is removed from the body.

First Nation

Indigenous peoples in Canada who are neither Inuit nor Métis, often referred to as bands or tribes in other contexts.

Heavy Drinking

The consumption of alcoholic beverages in quantities that exceed moderate drinking guidelines, potentially leading to health and social problems.

Opiate Family

A group of drugs, derived from the opium poppy, used primarily for pain relief but which can also lead to addiction and abuse.