Accounting Multiple Choice Question – 27 May 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

Wood Dragon Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

  • Long-Term Assets £1.8M
  • Inventory £1.7M
  • Accounts Receivables £1.5M
  • Bank Account £1.4M
  • Cash £0.1M
  • Accounts Payable £1.9M
  • Long-term Bank Loan £4M
  • Reserves  £0.5M
  • Share Capital £1.0M
  • Revenue  £20.8M
  • Cost-of-Sales  £17.0M
  • Net Profit Margin  £1.5M
  • Purchases  £10.1M

What is Wood Dragon’s Gross Profit Mark-up Percentage?

Select ONE answer:

  1. 22.35
  2. 11.06
  3. 27.27
  4. 7.21
  5. 18.27

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 1 – £20.8M – £17.0M = £3.8M / £17.0M * 100 = 22.35%

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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