Accounting Multiple Choice Question – 6 May 2022

A business has provided the following information about its inventory.

• cost price – £18,750
• cost of repairs required to bring the inventory to a saleable condition – £3,750
• selling price after the repairs – £21,000

Which valuation should be used for inventory in the financial statements?

Select ONE answer:

1. £15,000
2. £17,250
3. £22,500
4. £24,750

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 ==> £21,000 – £3,750
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.