Tag: AQA

The following information relates to a retail business whose financial year ends on 31 December.

• Sales for the period 1 January – 31 December – £240,000
• Stock at 1 January – £10,300
• Purchases for the period 1 January – 31 December – £186,000
• Percentage mark-up applied during the period 1 January – 31 December – 33 1/3%

The firm‘s stock as at 31 December at cost was?

Select ONE answer:

1. £4,300
2. £16,300
3. £36,300
4. None of the above.

 

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 2

1. Not correct
2. Correct – Cost of sales + 33 1/3% = £240,000 Therefore, Cost of sales = £180,000. Cost of sales = Opening stock + purchases – closing stock. Therefore, £180,000 = £10,300 + £186,000 – closing stock. Therefore, closing stock = £16,300
3. Not correct
4. Not correct

 

 

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A firm’s cost of sales for a particular accounting period was £16,000. During the period it earned a gross profit margin of 20% on all goods sold.  The firm‘s sales for the accounting period were?

Select ONE answer:

1. £13,600
2. £20,160
3. £21,000
4. None of the above.

 

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 – Cost of sales = Sales * 100/ 120. £16,000 = Sales * 100/ 120. Therefore, Sales = £16,000 * 120/ 100 = £19,200. Therefore, none of the answers given is correct.

 

 

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A firm’s gross profit margin is 20%. Its mark-up on cost is?

Select ONE answer:

1. 16 2/3rds %
2. 22%
3. 25%
4. 30%

 

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 – Gross Profit Margin = Gross Profit as a percentage of selling price = 20%.  Let the selling price = £100.  Therefore, gross profit = £20.  Therefore, cost = £80.  The mark-up on cost = Profit as a percentage of cost price.  £20 / £80 = 25%.
4. Not correct

 

 

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The gross profit margin earned by a shopkeeper who sells all goods at 25% above their cost is?

Select ONE answer:

1. 20%
2. 30%
3. 33 1/3 %
4. 35%

 

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 1

1. £25.  Selling price = Cost + gross profit = £125 Gross profit Margin = Gross Profit as a percentage of selling price = £25 / £125 = 20%.
2. Not correct
3. Not correct
4. Not correct

 

 

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The mark-up on an item which cost £500 and is sold for £625 is?

Select ONE answer:

1. 20%
2. 25% 
3. 33 1/3%
4. None of the above.

 

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 2

1. Not correct 
2. Correct – Mark-up (on cost) 2 Gross Profit as a percentage of cost price = (£625 – £500) / £500 = 25%.
3. Not correct
4. Not correct

 

 

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