Free BA3 Exam Braindumps (page: 31)

CORRECT TEXT

A company started the year with an allowance for receivables of $2,500.

During the year, an $800 bad debt was written off and a debt of $350 that had been written off as bad in the previous year was received in full. At the year end the allowance for receivables was $2,300.

The charge in the income statement for the year in respect of bad debts is $

An organization's cash book has an opening balance in the bank column of $4,850 credit.

The following transactions then took place:

(a) Cash sales of $14,500, including VAT of $1,500.
(b) Receipts from customers of debts of $24,000.

(c) Payments to creditors of debts of $18,000, less 5% cash discount.

(d) Dishonored cheques from customers amounting to $2,500.

The resulting balance in the bank column of the cash book should be:

In a cash flow statement, which one of the following would not be found under the section "cash flows from financing activities"?

Which ONE of the following does not apply to the preparation of management accounts?