Neco Model Questions Vol1 2018 Financial Accounting Question 34

Practice objective / multiple choice question 34 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 34 NECO_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

XYZ Enterprises recorded credit sales of \(\text{₦}120,000\) and the related cost of goods sold of \(\text{₦}72,000\). Later, the company received cash of \(\text{₦}80,000\) from its customers. Assuming no other transactions, determine the balance in the Accounts Receivable ledger, the cash balance, and the gross profit for the period.

Answer Options

Correct Answer A. Accounts Receivable: ₦40,000; Cash: ₦80,000; Gross Profit: ₦48,000
B. Accounts Receivable: ₦40,000; Cash: ₦80,000; Gross Profit: ₦56,000
C. Accounts Receivable: ₦40,000; Cash: ₦120,000; Gross Profit: ₦48,000
D. Accounts Receivable: ₦80,000; Cash: ₦80,000; Gross Profit: ₦48,000
Correct Answer
A
Correct Option:
Accounts Receivable: ₦40,000; Cash: ₦80,000; Gross Profit: ₦48,000

About This Question

This is Neco Model Questions Vol1 2018 Financial Accounting Question 34. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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