2 Elimination of inter entity balances and transactions-which of the following does it explain? (A) Entity concept of consolidation (B) Parent concept of codation (C) Proprietorship concept of consolidation (0) Partial ownership concept of coatin Accrual (A) Income is recognised in the financial account 5 the cash is received. Expenditure is recognised as its incurred, not when If the cost of goods sold for the month of January 2008 $55,000 what the suming the company has 30% mark up and 20% margin? 10% mark-up 20% margin $58,750 (A) $71,500 (8) $11,000 $13,750 (CI $68750 $85,000 (0) $13,750 $11,000 Page 2 of 9 Financial menta prepared on the transaction involving the payment and basis inform users not only of capt of cash but also of obligations to pay cash in the future and of escurces that represent cash to be received in the future. They provide information about transactions and other events that is (Caccrual, past, past, most A business opens on 1 Jan 2018 530.000 per year and is payable in advanc 1 Jan 20: $8,000 31 Mar 20 30 Jun 20 $8,000 $8,000 30 Sep 20x $8.000 31 Dec 20 18000 Total rental expense paid as of 31 Dec 20xd amount to $40,000. What is the double entry (A) Prepayment $10,000 (8) Rant expense $10,000 (Accrued income $10,000 Income $10,000 $10,000 Accrual $10,000 Income $10,000 Prepaid income $10,000 6 Mr L. purchase goods for $174,240 (including sales tax) and sells goods for 20% What amount of sales tax is ultimately payable to the tax authority based upon this information? (A) $50,160 $29,040 (C) $38,400 (0) $0.300