A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2021 · Q121 Mark

William buys radios for $10 each and sells them for $15 each. His draft statement of financial position included a value of $1500 for inventory. His method of calculation of inventory was correct. He then found that 12 radios could only be sold for $8 each and 4 radios had been stolen. By how much should William reduce his inventory valuation?

A$64

B$84

C$124

D$144

✓ Correct answer

A: $64

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 12.

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