Accounting Multiple Choice Question – 23 December 2020

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

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A business was started on 1 January. The purchase and sales of stock for January were:

The business use the First-In First-out (FIFO) method of stock valuation.

What was the gross profit for January?

Select ONE answer:

  1. £650
  2. £700
  3. £750
  4. £1,150

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

  1. Not correct
  2. Not correct
  3. Correct – £1600 – £600 – £250 = £750
  4. Not correct

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