Day: March 13, 2021

A business has a draft net profit of £84,000.

It is discovered that the closing stock was overvalued by £4,000 and that discounts received of £1,500 were treated as an expense.

What is the corrected net profit?

Select ONE answer:

1. £81,500
2. £83,000
3. £89,500
4. £91,000

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 – £84k – £4k + (£1.5k *2)
3. Not correct
4. Not correct

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