Thursday, 5 November 2015

Cima P1 Exam Question No 27

Question No 27:

AB is preparing its cash budget for next year. The accounts receivable at the beginning of next year are expected to be $460,000. The budgeted sales are $5,400,000 and will occur evenly throughout the year. 80% of the budgeted sales will be on credit and the remainder will be cash sales. Credit customers pay in the month following sale.
The budgeted cash receipts from customers next year are:

A.
$5,040,000
B.
$5,410,000
C.
$5,500,000
D.
$4,420,000

Answer: C

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