Accounting Multiple Choice Question – 25 August 2019

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

A wholesaler sold 55 items to a retailer at a price of £20 each, less 20% trade discount.

The retailer subsequently returned twelve of the items.

As a result of this, the retailer should be sent a credit note for …

Select ONE answer:

  1. £172
  2. £192
  3. £240
  4. £288

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 2

  1. Incorrect
  2. Correct – Cost of items returned = (£20 less 20%) each = £16 each As 12 items were returned, the total cost of all of the items returned is £16 each x 12 = £192
  3. Incorrect
  4. Incorrect

 

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