1 2 Elimination of inter entity balances and transactions - which of the following does it explain? (A) Entity concept of consolidation (B) Parent concept of consolidation (C) (D) Proprietorship concept of consolidation Partial ownership concept of consolidation Accruals is: ) (A) Income is recognised in the financial accounts as cash is received, not when it is earned. Expenditure is recognised as it is paid for, not when it is incurred. (B) Income is recognised in the financial accounts it is earned, not when cash is received. Expenditure is recognised as it is paid for, not when it is incurred. (C) Income is recognised in the financial accounts as it is earned, not when the cash is received. Expenditure is recognised as it is incurred, not when it is paid for. (D) Income is recognised in the financial accounts as cash is received, not when it is earned. Expenditure is recognised as it is incurred, not when it is paid for. 3 ) If the cost of goods sold for the month of January 2008 is $55,000, what is the sales assuming the company has 30% mark up and 20% margin? 30% mark-up 20% margin (A) $71,500 $68,750 (B) $11,000 $13,750 $68,750 $66,000 $13,750 $11,000 )