Accounting Multiple Choice Question – 31 March 2020

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

A firm’s cost of sales for a particular accounting period was £16,000. During the period it earned a gross profit margin of 20% on all goods sold.  The firm‘s sales for the accounting period were?

Select ONE answer:

  1. £13,600
  2. £20,160
  3. £21,000
  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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – Cost of sales = Sales * 100/ 120. £16,000 = Sales * 100/ 120. Therefore, Sales = £16,000 * 120/ 100 = £19,200. Therefore, none of the answers given is correct.

 

 

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