A-LevelAccountingAccounting Principles and ConceptsOct/Nov 2012Paper 1 Q61 Mark
Draft financial statements show revenue of $106 000 and closing inventory of $2100. There were 100 items which had cost $10 an item but which were for sale at $6 an item. At the year end these were with a customer on a sale or return basis. These items were treated as having been sold although no sale had been agreed. What are the values of revenue and inventory when the principle of prudence is applied?
A105 000 2700
B105 000 3100
C105 400 2700
D105 400 3100
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The correct answer is C. This question tests the candidate's understanding of accounting principles and concepts within the Accountingsyllabus. The examiner's mark scheme requires...
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