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Questions -
Q1. Bob paid $2300 for electricity for the year. There was an opening accrual of $80 and a closing accrual of $100. What is the Statement of Profit/Loss charge for electricity for the year?
a. $2120
b. $2320
c.$2280
d. $2300
(Confused if I should deduct both accruals and the charge comes to 2120 or if I should just take the 2300 that the question says he paid and take that as the answer).
Q2. Provision for doubtful debts are calculated at the end of the year. Why?
a. Sales are not always invoiced to customers
b. Customers sometimes pay after the credit terms
c. The full amount of receivables is not completely recoverable
d. Receivables balance is too small
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