Neco 2017 Financial Accounting Question 29

Practice objective / multiple choice question 29 from the 2017 Neco Financial Accounting examination.

Neco 2017 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 29 NECO • 2017 • FINANCIAL_ACCOUNTING • objective

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.

Answer Options

A. Purchases \\(\\text{₦}500,000\\); Opening stock \\(\\text{₦}245,000\\)
B. Purchases \\(\\text{₦}530,000\\); Opening stock \\(\\text{₦}210,000\\)
C. Purchases \\(\\text{₦}540,000\\); Opening stock \\(\\text{₦}205,000\\)
Correct Answer D. Purchases \(\text{₦}530,000\); Opening stock \(\text{₦}215,000\)
Correct Answer
D
Correct Option:
Purchases \(\text{₦}530,000\); Opening stock \(\text{₦}215,000\)

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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