The basic entry to provide for company income tax at the end of the financial year is which of the following?

Select one:

a. Dr Current tax liability; Cr Income tax expense

b. Dr Retained earnings; Cr Current tax liability

c. Dr Income tax expense; Cr Bank

d. Dr Income tax expense; Cr Current tax liability

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Canada Ltds financial records reveal this information at 31 December 2020.

Net sales for 2020	$52 500
Cost of sales for 2020	34 000
Closing inventory	7 500
Opening inventory	9 500

The number of days taken to turn over average inventory for 2020 is:

Select one:

a. 76 days.

b. None of the options

c. 91 days.

d. 71 days.

e. 61 days.

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Canada Ltd has a current ratio of 2.5 to 1 and current liabilities of $36 000. If Canada Ltd has $27 000 of inventory what is the quick ratio?

Select one:

a. 1.50 to 1

b. 1.75 to 1

c. 2.25 to 1

d. 2.00 to 1

e. None of the options

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What is the formula for receivables turnover in times per annum?

Select one:

a. Average receivables balance/net sales revenue

b. 365/net sales

c. Net sales revenue/total assets

d. Net sales revenue/average receivables balance

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Assume the cost of goods manufactured is $978 000, the opening inventory of finished goods is $60 000, and the closing inventory of finished goods is $54 000. Calculate the cost of goods sold.

Select one:

a. $1 092 000

b. Cannot be calculated with the information available

c. $984 000

d. $972 000