Deck 3: The Statement of Profit or Loss

Question 1

If sales are £200,000, opening inventory is £20,000, purchases for the year are £100,000 and gross profit is £110,000, what is the figure for closing inventory?

A) £10,000
B) £30,000
C) £80,000
D) £90,000

Answer 1

B

Question 2

Revenue in the statement of profit or loss is calculated as:

A) Sales - sales returns - discounts allowed not taken up
B) Sales - sales returns + discounts allowed not taken up
C) Sales - sales returns
D) Sales + sales returns

Answer 2

B