A-LevelAccountingPreparation of financial statements9706/12 · May/June 2021 · Q101 Mark

A sole trader provided the following information. $ sales 200 000 opening inventory 50000 closing inventory 75000 gross margin 25% What were the purchases for the year?

A$125000

B$150000

C$175000

D$185000

✓ Correct answer

C: $175000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2021 Paper 1 Variant 2, question 10.

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