Accounting Multiple Choice Question – 12 June 2023

Alex plc sells goods at cost plus 25 %.

Information for a recent financial year is shown below.

• Turnover – £240k
• Opening stock – £42k
• Closing stock – £48k

What is the total of purchases for the year?

Select ONE answer:

1. £180k
2. £186k
3. £192k
4. £198k

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – £240k / 1.25 = £192k + (£48k – £42k)

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