BA3 Exam Dumps - Fundamentals of financial accounting

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Question # 57

Refer to the exhibit.

The trial balance of Monchu Partnership, as at 30 June 2006, has a suspense account. Subsequent investigations revealed that:

(1) A payment of Â£352 to Mr. Tan was posted as Â£325.

(2) A remittance of Â£450 received from Arumugam was credited to Armits accounts.

(3) Salaries of Â£12000 have not been posted from the cash book.

Monchu suggested the following adjustments:

The appropriate journal entries are:

(a), (c) and (e) only

(b), (d) and (f) only

(b) and (f) only

(b), (e) and (f) only

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Question # 58

ABC Limited had a gross profit margin of 55%, while a direct competitor, XYZ Limited, has a gross profit margin of 60%.

Which THREE of the following would be an acceptable explanation for this?

ABC Limited has a higher selling price than XYZ Limited

ABC Limited has a lower selling price than XYZ Limited

ABC Limited has better control of its production costs than XYZ Limited

XYZ Limited has better control of its production costs than ABC Limited

ABC Limited has a lower profit mark-up than XYZ Limited

ABC Limited has a higher profit mark-up than XYZ Limited

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