A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2018 · Q111 Mark

The draft financial statements for a business included an inventory valued at $550000. This valuation included damaged items which originally cost $50000. These could be sold for $15000 provided that $5000 is spent on repairs. What is the correct inventory valuation?

A$490000

B$500 000

C$510000

D$515000

✓ Correct answer

C: $510000

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.

About this question

Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2018 Paper 1 Variant 2, question 11.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Preparation of financial statementsFeb/Mar 20161m

Which is not an appropriation of partnership profit?

Preparation of financial statementsFeb/Mar 20161m

A limited company intends to issue shares at a price above the nominal value. Which items, apart from bank balance, w…

Preparation of financial statementsFeb/Mar 20161m

A company issues one million ordinary shares of $1 each at $1.30 per share. It also issues a debenture for $500000. W…

Accounting for non-current assetsFeb/Mar 20161m

A computer used for demonstration to customers was treated as capital expenditure. At the end of the year a customer …

Analysis and communication of accounting informationFeb/Mar 20161m

What is measured by the return on capital employed ratio?

Analysis and communication of accounting informationFeb/Mar 20161m

The following ratios have been calculated for two businesses, both with the same revenue of $100000. X Y gross margin…

← Browse all past-paper questions