Neco 2022 Financial Accounting Question 7
Practice objective / multiple choice question 7 from the 2022 Neco Financial Accounting examination.
ABC Traders reported the following information for the year ended 31 December 2022:\n- Sales: ₦1,200,000\n- Purchases: ₦720,000\n- Opening stock: ₦80,000\n- Closing stock: ₦100,000\n- Salaries expense: ₦150,000\n- Rent expense: ₦60,000\n- Equipment cost: ₦300,000; residual value: ₦30,000; straight‑line depreciation over 5 years.\n- Credit sales constitute 80 % of total sales.\n- A doubtful‑debt expense equal to 2 % of credit sales is recognised.\nCalculate the net profit for the year.
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About This Question
This is Neco 2022 Financial Accounting Question 7. It is one of the objective questions from the 2022 Neco Financial Accounting examination.
Difficulty level: Medium .
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