Accounting Multiple Choice Question – 27 April 2019

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

The following information concerns a retailing firm.

  • Sales during July – £8,200
  • Purchases during July – £6,400
  • Stock at 1 July – £1,300
  • Stock at 31 July – £900
  • Carriage inwards on July purchases – £200

The firm’s cost of sales for July is…?

Select ONE answer:

  1. £6,200
  2. £6,800
  3. £7,000
  4. None of the above.

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

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

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 3

  • Stock at 1 July                                            £1,300
  • Purchases during July                             + £6,400
  • Carriage inwards on July purchases    + £200
  • Stock at 31 July                                          – £900
  • Cost of sales for July                                 = £7,000

 

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