Other questions in this quiz

2. [Final Subheading] Depreciation expense:

  • Equipment (percentage x price); Vans (percentage x price);Loan & Bank interest (percentage x price)
  • Equipment & Vans (percentage x price); Loan & Bank interest (percentage x price)
  • (percentage x price)

3. Totals:

  • Gross profit after Sales and Cost of sales & Net profit at the end
  • Gross profit; Total sales: Net profit

4. Bad debts included

  • Yes after accruals
  • Yes after Depreciation expense
  • No
  • Yes after Less Cost of sales

5. Advising how amount charged for loan and bank interest could be reduced

  • Arrange loan instead of over draft; incerase sales; reduce drawings; new loan or O/D at lower rate
  • Increases cost of sales; decreases gross & net profit:reduces assets in balance sheet


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