Accounting Multiple Choice Question – 14 July 2018

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

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

  • Long-Term Assets £1.8M
  • Inventory £2.7M
  • Accounts Receivables £1.5M
  • Bank Account £0.4M
  • Cash £0.1M
  • Accounts Payable £2.9M
  • Long-term Bank Loan £4M
  • Reserves  £1.5M
  • Share Capital £1.0M
  • Revenue  £25.8M
  • Cost-of-Sales  £20.0M
  • Net Profit Margin  £2.5M
  • Purchases  £11.5M

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

Select ONE answer:

  1. 29.00
  2. 10.85
  3. 38.46
  4. 9.69
  5. 22.48

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 – £25.8M – £20.0M = £5.8M / £20.0M * 100 = 29.00%

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