A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2011 · Q181 Mark

The annual accounts of a business include the following. $ revenue 160 000 opening inventory 10 000 closing inventory 14 000 Inventory turnover is 10 times. What is the gross profit?

A$20 000

B$40 000

C$60 000

D$120 000

✓ Correct answer

B: $40 000

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2011 Paper 1 Variant 2, question 18.

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