ACC4034-Week3

If a company had purchases of £54,533, opening inventory of £17600 and closing inventory of £14342, what would the value of cost of sales be?

• £57,791

• £86,475

• £17,600

• £54,533

A company is said to be in profit when;

• Expenses exceeds income

• Sales exceeds expenses

• Sales exceeds liabilities

• Assets exceeds expenses

Which of the following would not appear on the statement of Profit or Loss Account?

• Rent received

• Cash expenses

• Drawings

• Expenses owing by the year-end

A business had sales of £250,000 and cost of sales of £60,000, what is the gross profit?

• £310,000

• £250,000

• £160,000

• £190,000

1.     ABC & Sons had the following figures in its profit and loss account:

£

Sales                         920,000

Cost of sales              320,000

Gross Profit

Expenses

Salaries                     220,000

Advertising                 100,000

Rent                            80,000

Other expenses            50,000

Net Profit
Using the information above, what is the gross profit figure?

• £320,000

• £920,000

• £1,240,000

• £600,000

1.     ABC & Sons had the following figures in its profit and loss account:

£

Sales                         920,000

Cost of sales              320,000

Gross Profit

Expenses

Salaries                     220,000

Advertising                 100,000

Rent                            80,000

Other expenses            50,000

Net Profit
Using the same information from question 5, what is the net profit figure?

• £810,000

• £150,000

• £450,000

• £1,690,000

Gross profit is;

• Sales less costs of goods sold

• Sales less purchases

• Costs of goods sold + opening inventory

• Opening inventory + purchases – closing inventory