A-LevelAccountingPreparation of financial statements9706/12 · May/June 2020 · Q111 Mark

A business owner provided the following information at the end of his first year of trading. [Table with 'closing inventory' $15000, 'total payments to suppliers' $60000, 'amount owing to suppliers' $5000, 'total receipts from customers' $85000, 'amount owed by customers' $10000] What was the gross profit for the year?

A$10000

B$15000

C$25000

D$45000

✓ Correct answer

D: $45000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2020 Paper 1 Variant 2, question 11.

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