Accounting Multiple Choice Question – 3 January 2023

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

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