Gce Model Questions Vol1 2019 Financial Accounting Question 22
Practice objective / multiple choice question 22 from the 2019 Gce Model Questions Vol1 Financial Accounting examination.
The income statement of XYZ Ltd shows a gross profit of \(\text{₦}120{,}000\). The opening inventory was \(\text{₦}30{,}000\), purchases during the year were \(\text{₦}80{,}000\) and the closing inventory was \(\text{₦}25{,}000\). Operating expenses before depreciation total \(\text{₦}45{,}000\). Plant and equipment cost \(\text{₦}100{,}000\) with accumulated depreciation at the start of the year of \(\text{₦}40{,}000\). Depreciation is calculated using the reducing‑balance method at 20 % per annum and no disposals occurred. What is the net profit for the year?
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About This Question
This is Gce Model Questions Vol1 2019 Financial Accounting Question 22. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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