Question 1

A construction company has the following budgeted sales:
January: $100,000
February: $120,000
March: $150,000

Sales are 40% cash and 60% credit. Credit customers pay in the month following the sale. 
Calculate the total cash receipts budgeted for March. (Enter numbers only)

Accepted Answer

1. Calculate March cash sales (40% of March sales). 2. Calculate March receipts from credit sales (60% of February sales). 3. Add them together.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Taking 60% of March sales instead of February sales, or forgetting to include the cash sales portion.

A construction company has the following budgeted sales:
January: $100,000
February: $120,000
March: $150,000

Sales are 40% cash and 60% credit. Credit customers pay in the month following the sale.
Calculate the total cash receipts budgeted for March. (Enter numbers only)

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA MA — Management Accounting Practice Exam 4

More questions from this exam