Accounting Online Program Certification Practice Test

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Prepare for the Accounting Online Program Certification Test. Use flashcards and multiple choice questions with detailed explanations. Ace your accounting certification exam with confidence!

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What is the rental income for the financial year ended 31 December 20X2 based on the information given?

£500
£725
£800
£200

The correct answer is: £725

To determine the rental income for the financial year ended 31 December 20X2, it is important to identify the total amount of rent earned during that period based on the provided information. The calculation of rental income typically includes all payments received for rental use of property during the specified year. If the information indicates various rental agreements, tenant payments, and periods of occupancy, these details should be aggregated. In this case, if the figures add up to £725, this would be the total accounting for all rental transactions, reflecting the correct answer. It's essential to ensure that revenue recognition principles are followed, meaning income is recorded when it is earned, not necessarily when it is received in cash. Considering the context, if the choices provided reflect other amounts like £500, £800, or £200, they likely stem from miscalculated totals, or perhaps they reflect alternative scenarios within the same account period rather than the total earned. Therefore, concluding that £725 is the correct rental income suggests a careful evaluation and accurate summation of all relevant transactions for that financial year.