Tag: Cost Of Sales

Accounting Multiple Choice Question – 17 December 2023

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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

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