The following information relates to SellIT:
 5000 units of stock were sold for $10 per unit
 the cost of that stock to SellIT was $4.50 per unit
 other costs incurred during the period totalled $10 000
 proceeds on sale of an item of plant during the period was $2000
 the carrying amount of the plant at the date of disposal was $500.
SellIT would recognise the following amount as revenue for the period:
A) $27 500
B) $50 000
C) $51 500
D) $52 000

Question

Quizplus · Accepted Answer

Revenue is recognized from the sale of goods, which is 5000 units sold at $10 per unit, totaling $50,000. The other figures relate to costs and proceeds from asset sales, not revenue.

The Following Information Relates to SellIT