Accounting Multiple Choice Question – 3 March 2023

At the beginning of the financial year Alex Ltd’s inventory was valued at £15,000.

During the year, sales of £21,000 and purchases of £18,000 were made.

Unfortunately, all the inventory was stolen on the last day of the financial year.

Goods are marked up by 50 % to calculate selling price.

What is the cost of Alex Ltd’s stolen inventory?

Select ONE answer:

1. £7,500
2. £11,000
3. £19,000
4. £22,500

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 = £15k + £18K – £14k (£21k / 1.5)
4. Not correct

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