MM does not maintain complete accounting records.

CIMA BA3 Question Answer

MM does not maintain complete accounting records. The following information is available for the year ended 31 December 20X3:

The mark up on items sold by MM is 20%.

Which THREE of the following statements are true?

Opening receivables is a debit balance

Using mark-up means the profit is based on selling price

Opening receivables is a credit balance.

Opening inventory is a credit balance

Using mark-up means the profit is based on cost

Opening inventory is a debit balance.

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