Accounting Multiple Choice Question – 1 April 2020

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

Accounting

The following information relates to a retail business whose financial year ends on 31 December.

  • Sales for the period 1 January – 31 December – £240,000
  • Stock at 1 January – £10,300
  • Purchases for the period 1 January – 31 December – £186,000
  • Percentage mark-up applied during the period 1 January – 31 December – 33 1/3%

The firm‘s stock as at 31 December at cost was?

Select ONE answer:

  1. £4,300
  2. £16,300
  3. £36,300
  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 2

  1. Not correct
  2. Correct – Cost of sales + 33 1/3% = £240,000 Therefore, Cost of sales = £180,000. Cost of sales = Opening stock + purchases – closing stock. Therefore, £180,000 = £10,300 + £186,000 – closing stock. Therefore, closing stock = £16,300
  3. Not correct
  4. Not correct

 

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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