O-LevelAccountingAccounting principles and policies7707/12 · May/June 2024 · Q191 Mark

Alex purchased goods costing $1000. She planned to resell the goods at a mark-up rate of 25%. These goods were unsold at the year end and were found to be damaged. Alex estimated that they could be sold for $600. What value should be shown for these goods in the year-end financial statements?

A$400

B$600

C$750

D$1250

✓ Correct answer

B: $600

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2024 Paper 1 Variant 2, question 19.

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Alex purchased goods costing $1000. She planned to resell the goods at a mark-up rate of 25%. These goods were unsold at the year end and were found to be damaged. Alex estimated that they could be sold for $600. What value should be shown for these goods in the year-end financial statements?

✓ Correct answer

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