A-LevelAccountingInventory Valuation / Cost of SalesMay/June 2020Paper 1 Q171 Mark
A business sells goods at a uniform mark-up of 25%. The following information is available. [Table with 'sales revenue' $120000, 'opening inventory' $18000, 'purchases' $95000, 'returns outwards' $2000] What is the value of closing inventory?
A$15000
B$19000
C$21000
D$25000
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of inventory valuation / cost of sales within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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