accounting

Salome is in business as a sole trader, selling wedding dresses and accessories. In the month of July 20X7 she makes sales totalling £9470. Her opening inventory was £19 570, and purchases during the month were £6251. Her closing inventory at the end of July 20X7 was £650 higher than it had been at the beginning of the month. Salome’s gross profit for July 20X7 is:

• £2569

• £3869

• £3219

• £1919

Sadia sells car first aid kits by mail order. The cost to her of each kit purchased from the manufacturer is £12.50. Her selling price per kit is £18.25. At the beginning of August 20X1 she has 180 kits in inventory. She sells 250 kits during August 20X1 and has 153 left in inventory at the end of the month. How many first aid kits has Sadia purchased in August 20X3?

• 277

• 403

• 250

• 223

Sadia sells car first aid kits by mail order. The cost to her of each kit purchased from the manufacturer is £12.50. Her selling price per kit is £18.25. At the beginning of August 20X1 she has 180 kits in inventory. She sells 250 kits during August 20X1 and has 153 left in inventory at the end of the month. What is Sadia’s gross profit for the month of August 20X3?

• £1437.50

• £4562.50

• £1282.25

• £2787.50

. During his trading year to 31 December 20X3 Solomon sells 19 000 units of inventory at £29.75 each. His gross profit on each unit is £7.50. He purchased inventory during the year at a total cost of £435 655. At 31 December 20X3 his stocktaking shows that he has 2560 units still in inventory. What was the value of Solomon’s opening inventory on 1 January 20X3?

• a) £58 905

• b) £44 055

• c) £76 160

• d) £85 540

A bookshop based in Ilford pays a supplier, Patel Wholesale Ltd, the amounts owed in cash. The entries in the supermarket account should be:

• Debit: Purchases, Credit: Cash

• Debit: Cash, Credit: Patel WholesaleLtd

• Debit: Patel Wholesale Ltd, Credit: Cash

• Debit: Cash, Credit: Purchases

The following are extracts from an income statement for the year-end December 2020 What is the Gross Profit?

December 2020 £000

Sales revenue 10,000

Cost of sales (8,500)

Distribution costs (300)

Administrative expenses (200)

Net interest paid (150)

Taxation (500)

Dividends (100)

• £850

• £1,350

• £170

• £1,500

Which one of the following user groups is likely to require the most detailed financial information?

• a) Management

• b) Shareholders

• c) Customers

• d) The public

A company has Net trading profits of £10,000,000, tax £1,000,000, income from other operations of £3,000,000, its gross profit is:

• £14million

• £8million

• None of the above

• £12million

An example of a non-current asset is:

• Goodwill

• Accounts Receivables

• Pre-Paid Expenses

• Inventory

. For a company Gross profits are £145m, opening stock is £10m closing stock is £13m and purchases are £8m, what are Revenues?

• £119m

• £150m

• £139

• £135m