ACCA Financial Accounting (F3) Certification Practice Exam

Question: 1 / 400

What is the amount owed to the authorities at the end of the period for Ramsgate's transactions, considering outputs and inputs?

$3,700

$3,930

$4,400

$5,300

To determine the amount owed to the authorities at the end of the period for Ramsgate's transactions, one must consider the outputs (sales tax collected on sales) and inputs (sales tax paid on purchases).

The amount owed to the authorities is typically calculated by taking the total outputs and subtracting the total inputs. This will give you the net liability or asset concerning value-added tax (VAT) or sales tax. If outputs exceed inputs, the resulting figure represents the amount owed.

In this case, if you've established detailed transaction amounts that led to a total owed of $5,300, it suggests that the collected outputs significantly surpassed the paid inputs, resulting in a liability by the end of the period that aligns with the amount noted.

This indicates that the calculations involved accurately reflected the sales tax obligations based on the transactions conducted throughout the period, ensuring that all factors, such as total sales and purchases, were properly accounted for in arriving at this amount.

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