The Baily Division Recorded Operating Data as Follows for the Past

question 27

Multiple Choice

The Baily Division recorded operating data as follows for the past two years: Baily Division's turnover was exactly the same in both Year 1 and Year 2.
-Sales in Year 1 amounted to:

• A)$400,000
• B)$900,000
• C)$750,000
• D)$1,200,000

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Definitions:

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within a business’s normal operating cycle if longer than a year.