A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2009 · Q61 Mark

Stock has been damaged. The stock cost $1200. It would normally have sold for $1800. It can be sold for $1700 if repairs are undertaken at a cost of $600. To replace the stock would cost $1000. At what value should the damaged stock be shown in the final accounts?

A$1000

B$1100

C$1200

D$1800

✓ Correct answer

B: $1100

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2009 Paper 1 Variant 2, question 6.

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