Question 9 (2 points)

How should an organisation account for the scenario whereby the organisation has performed the related service and has issued an invoice to the customer, but the organisation has not yet received the cash?

Question 9 options:

1)	The organisation should recognise the income and receipt of cash. Cash at bank (asset) will increase and income will increase (equity increases).

2)	The organisation should recognise the income and recognise an asset, perhaps called an account receivable. Accounts receivable (asset) will increase and income will increase (equity increases).

3)	The organisation should not recognise the income. Instead, they should recognise an increase in cash, and recognise a liability: revenue received in advance. Cash at bank (asset) will increases and revenue received in advance (liability) will increase.

4)	The organisation has nothing to recognise.

Question 10 (2 points)

If a manager is considering shifting the manufacture of their products to a different country, what would be some of the implications to consider?

Question 10 options:

1)	What will be the differences in resource consumption?

2)	What will be the difference in social impacts?

3)	What are the implications for transportation-related costs and impacts?

4)	All of these choices

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