Accounting Multiple Choice Question – 17 December 2023

The following information has been extracted from Alex Trading’s books of accounts on the last day of the financial year, 31 December 2023?

• Revenue – £ 35,860
• Inventory at 1 January 2023 – £4,070
• Inventory at 31 December 2023 – £5,160
• Purchases – £10,800
• Returns outwards – £3,100
• Returns inwards – £2,840

What is the value of ‘Cost of Sales’ that will be shown in the Income Statement for the year ended 31st May 2023?

Select ONE answer:

1. £29,250
2. £9,710
3. £6,610
4. £6,870

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 – £4,070 + £10,800 – £3,100 – £5,160
4. Not correct

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