I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

for these items?  

A $61,000 

 

B $22,000 

 

C $24,000 

 

D $23,850 

 

 

(2 marks) 

BPP Tutor Toolkit Copy

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PRACTICE QUESTION BANK 

 

495 

48   Which of the following statements is/are true? 

1 

An aged receivables analysis is a report used to help the business pay its suppliers on time. 

2 

A credit limit is the minimum amount a customer must spend when purchasing goods on 

credit from a supplier. 

A 1 

only 

B 2 

only 

C 

Both 1 and 2 

D 

Neither 1 or 2 

 

(2 marks) 

The following information relates to questions 49 and 50.  

North Co has a receivables balance at 31 October 20X7 of $456,330. The accountant at North is 

preparing the financial statements for the year ended 31 October 20X7 and must account for the 

following. 

1 

A balance owed by South Co of $780 is deemed irrecoverable and must be written off. 

2 

The brought forward receivables allowance is $15,255. The allowance for receivables 

should be adjusted to the equivalent of 5% of the outstanding receivables balances. 

3 

A payment of $450 from East Co has been received on 30 October. The payment relates 

to a balance that had previously been written off as irrecoverable by North Co.  

49 

What value for receivables should appear in the statement of financial position of North Co at