in the 2018 financial year, a company's cash sales and credit sales are R100 000 and R50 000, respectively; and its cash purchases and credit purchases are R80 000 and R20 000, respectively. According to the matching concept. how should the stated transactions affect the preparation of financial statements? O a. Sales of R50 000 and purchases of R60 000 should be recognised in the determination of profit. O b. Sales of R50 000 and purchases of R20 000 should be recognised in the determination of profit. O c. Sales of R100 000 and purchases of R80 000 should be recognised in the determination of profit. O d. Sales of R150 000 and purchases of R100 000 should be recognised in the preparation of profit
in the 2018 financial year, a company's cash sales and credit sales are R100 000 and R50 000, respectively; and its cash purchases and credit purchases are R80 000 and R20 000, respectively. According to the matching concept. how should the stated transactions affect the preparation of financial statements? O a. Sales of R50 000 and purchases of R60 000 should be recognised in the determination of profit. O b. Sales of R50 000 and purchases of R20 000 should be recognised in the determination of profit. O c. Sales of R100 000 and purchases of R80 000 should be recognised in the determination of profit. O d. Sales of R150 000 and purchases of R100 000 should be recognised in the preparation of profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![2
H
out of
In the 2018 financial year, a company's cash sales and credit sales are R100 000 and R50 000, respectively; and its cash
purchases and credit purchases are R80 000 and R20 000, respectively. According to the matching concept. how should
the stated transactions affect the preparation of financial statements?
O a. Sales of R50 000 and purchases of R60 000 should be recognised in the determination of profit.
O b. Sales of R50 000 and purchases of R20 000 should be recognised in the determination of profit.
O c. Sales of R100 000 and purchases of R80 000 should be recognised in the determination of profit.
O d. Sales of R150 000 and purchases of R100 000 should be recognised in the preparation of profit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83fc6723-2ddc-4d8e-9cd4-ae77505c5005%2F80a6d2b0-6e13-4ba8-9fd0-6c5f38d64f82%2Flt5n5yp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
H
out of
In the 2018 financial year, a company's cash sales and credit sales are R100 000 and R50 000, respectively; and its cash
purchases and credit purchases are R80 000 and R20 000, respectively. According to the matching concept. how should
the stated transactions affect the preparation of financial statements?
O a. Sales of R50 000 and purchases of R60 000 should be recognised in the determination of profit.
O b. Sales of R50 000 and purchases of R20 000 should be recognised in the determination of profit.
O c. Sales of R100 000 and purchases of R80 000 should be recognised in the determination of profit.
O d. Sales of R150 000 and purchases of R100 000 should be recognised in the preparation of profit
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