A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2010 · Q101 Mark

At the end of a financial year the following information is available. [Table showing sales $200 000, opening inventory (stock) $15 000, closing inventory (stock) $18 000] If the business makes a standard mark-up of 25%, what were the purchases?

A$147 000

B$153 000

C$157 000

D$163 000

✓ Correct answer

D: $163 000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2010 Paper 1 Variant 2, question 10.

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