Accounting Chapter 17 - Past Year MCQ

A trader does not keep full accounting records but was able to provide the following information. capital at 1 January 2021 $26 000 capital at 31 December 2021 $37 000 drawings made during year $6 500 During the year, $9500 was withdrawn from the owner’s private bank account to purchase a motor vehicle to be used by the business. What was the profit for the year?

• $8000
• $11 000
• $14 000
• $17 500

A business provided the following information. opening inventory $6800 closing inventory $6000 rate of inventory turnover 5 times What were the purchases for the year?

• $29 200
• $31 200
• $32 000
• $32 800

Jerry started his business on 1 January 2022 with no opening inventory. On 19 April 2022, a fire destroyed all his inventory. Jerry provided the following information for the period 1 January 2022 to 19 April 2022. revenue $30 200 purchases $25 600 gross margin 25% What was the value of inventory destroyed on 19 April 2022?

• $1800
• $2950
• $3450
• $5750

A business provided the following information. current assets 25 000 current liabilities 12 000 non-current assets 18 000 non-current liabilities 21 000 What was the capital of the business?

• $10 000
• $22 000
• $31 000
• $43 000

Tarek produced a statement of affairs at 31 December year 1 and at 31 December year 2. During year 2, his long-term loan increased by $3000 and his net current assets decreased by $1000. Depreciation for the year was $500. By how much did the total of Tarek’s capital decrease?

• $2500
• $3500
• $4000
• $4500

Wayne provided the following information. What was Wayne’s gross profit margin?

• 22.66%
• 25.22%
• 27.62%
• 29.29%

Beth provided the following information. Her drawings during the year amounted to $3000. What was Beth’s profit or loss for the year?

• $1000 loss
• $1000 profit
• $7000 loss
• $7000 profit

Roshan’s sales for his first year of trading were $55 000. His gross profit margin was 20%. The closing inventory was $3200. What were the purchases for the year?

• $41 250
• $44 000
• $44 450
• $47 200

A business provided the following information about its gross margin. Year 1 - 40% Year 2 - 38% Year 3 - 35% What could explain the changes in the gross margin?

• Cost of sales is decreasing.
• Expenses are decreasing.
• Quantity of goods sold is decreasing.
• Selling price is decreasing.

Nula provided the following information for the year ended 31 March 2021. drawings for the year $3 900 net assets at 1 April 2020 $60 500 net assets at 31 March 2021 $72 275 What was the profit or loss for the year ended 31 March 2021?

• $7875 loss
• $7875 profit
• $15 675 loss
• $15 675 profit