Gce Model Questions Vol1 2022 Financial Accounting Question 47

Practice objective / multiple choice question 47 from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 47 GCE_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

During June a business earned service revenue of \(50,000\). Of this, \(30,000\) was received in cash in June and the remaining \(20,000\) was received on 10 July. It incurred expenses of \(20,000\) paid in cash in June and another expense of \(10,000\) incurred on 25 June but paid on 5 July. Calculate the profit for June under the cash basis and under the accrual basis of accounting.

Answer Options

A. Cash basis profit = 0; Accrual basis profit = 10,000
B. Cash basis profit = 20,000; Accrual basis profit = 30,000
C. Cash basis profit = 5,000; Accrual basis profit = 15,000
Correct Answer D. Cash basis profit = 10,000; Accrual basis profit = 20,000
Correct Answer
D
Correct Option:
Cash basis profit = 10,000; Accrual basis profit = 20,000

About This Question

This is Gce Model Questions Vol1 2022 Financial Accounting Question 47. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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