Accounting Multiple Choice Question – 3 January 2023

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

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Alex the trader buys inventory costing £6,000 for resale to his customers.

Alex is entitled to trade discount at 10% and cash discount of 5% from his supplier.

On the same day. Alex discovers that he can only sell the inventory on for £5,000.

Which amount should Alex record as the purchase price of the inventory?

Select ONE answer:

  1. £5,000
  2. £5,130
  3. £5,400
  4. £6,000

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 3

  1. Not correct
  2. Not correct
  3. Correct – £6,000 * 0.9 = £5,400
  4. Not correct

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