Accounting Multiple Choice Question – 12 July 2021

The table shows the gross profit margin and net profit margin of a company.

What caused these changes between 2019 and 2020?

Select ONE answer:

1. a change in products sold leading to lower selling costs
2. a loss of trade discounts on purchases but an increase in cash discounts taken from suppliers
3. an advertising campaign to promote higher sales leading to higher selling prices
4. an increase in both production and selling costs

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
4. Not correct

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