Gce Model Questions Vol1 2020 Financial Accounting Question 36
Practice objective / multiple choice question 36 from the 2020 Gce Model Questions Vol1 Financial Accounting examination.
A local authority has an opening cash balance of \(£150,000\). Expected cash receipts during the year are: tax revenue \(£500,000\), government grant \(£200,000\) and other income \(£80,000\). Expected cash payments are: salaries \(£300,000\), supplies \(£120,000\), interest \(£30,000\) and capital expenditure \(£150,000\). At year‑end there are accrued expenses of \(£40,000\) not yet paid and accrued income of \(£25,000\) to be received after year‑end. A loan repayment of \(£50,000\) is scheduled but may be deferred if the cash balance falls below \(£100,000\). Determine the cash balance at year‑end and state whether the loan repayment must be deferred.
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About This Question
This is Gce Model Questions Vol1 2020 Financial Accounting Question 36. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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