Neco 2017 Financial Accounting Question 29
Practice objective / multiple choice question 29 from the 2017 Neco Financial Accounting examination.
An enterprise recorded the following cash information for the year:\n\n- Sales revenue: \(\text{₦}950,000\)\n- Gross profit margin: \(30\%\) of sales.\n- Closing stock of goods: \(\text{₦}80,000\)\n- Opening cash balance: \(\text{₦}40,000\)\n- Closing cash balance: \(\text{₦}60,000\)\n- Cash receipts from customers: \(\text{₦}720,000\)\n- Cash payments for wages: \(\text{₦}120,000\)\n- Cash payments for other expenses: \(\text{₦}50,000\)\n\nAssuming that all purchases of goods were paid for in cash, determine the amount of purchases made during the year and the opening stock of goods.
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About This Question
This is Neco 2017 Financial Accounting Question 29. It is one of the objective questions from the 2017 Neco Financial Accounting examination.
Difficulty level: Hard .
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