Day: September 13, 2019

In the Profit and Loss Account of a VAT-registered firm, the sales figure . . .

Select ONE answer:

1. should be exclusive of any VAT charged on sales.
2. should exclude cash sales.
3. should exclude credit sales.
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 1

1. Correct
2. Incorrect – The sales figure shown in the profit and loss account should be the total of cash sales and credit sales exclusive of VAT.
3. Incorrect – As for answer B above.
4. Incorrect

 

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