Incomplete Records Ratio Questions

On 1 April 2017 trade receivables owed $4250 and on 31 March 2018 they owed $3940.

During the year $46 750 was received from trade receivables and they returned goods, $1130.

What were the credit sales for the year?

• $46 440

• $47 060

• $47 570

• $48 190

The average inventory of a business was $40 000. The rate of inventory turnover was 5 times a year. Mark-up was 20%.

What was the revenue for the year?

• $160 000

• $200 000

• $240 000

• $250 000

Sumit does not maintain a full set of accounting records.

What does Sumit not need to calculate his credit sales?

• customer’s dishonoured cheque

• discounts allowed

• discounts received

• returns from credit customers

On 1 January 2019 current assets totalled $16 000 and the current ratio was 2 : 1.

On 31 December 2019 the current liabilities had increased by 50% and the current ratio was 1.5 : 1.

What was the value of the current assets on 31 December 2019?

• $16 000

• $18 000

• $32 000

• $32 000

Gordon provided the following information for the year.

Gordon took goods, $7000, for his own use.

What were the purchases?

• $43 000

• $47 000

• $54 000

• $61 000

A trader made the following forecasts for the business for the next financial year.

What are the forecast sales for the next financial year?

• $360 000

• $480 000

• $576 000

• $600 000

A business provided the following information.

What was the gross profit for the year?

• $31 250

• $37 800

• $47 250

• $64 000

Donald’s rate of inventory turnover was 10 times. The inventory on 1 January 2017 was $800 and the inventory on 31 December 2017 was $1 000.

What were his purchases for the year?

• $8 800

• $9 000

• $9 200

• $10 800