A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2014 · Q191 Mark

The draft accounts of a business for the year ended 30 June 2013 include the following: $ revenue 280 000 gross profit 60 000 It was subsequently discovered that the closing inventory was understated by $10000. What was the gross profit percentage after correcting this error?

A17.9%

B20.7%

C21.4%

D25.0%

✓ Correct answer

D: 25.0%

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2014 Paper 1 Variant 2, question 19.

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