Neco 2024 Financial Accounting Question 16
Practice objective / multiple choice question 16 from the 2024 Neco Financial Accounting examination.
A company reported sales of \( \text{₦}1,200,000 \) and a gross profit margin of \(30\%\). The opening inventory was \( \text{₦}80,000 \) and purchases during the year amounted to \( \text{₦}800,000 \). Depreciation expense recorded was \( \text{₦}48,000 \), which represents \(10\%\) of the equipment cost. Administrative expenses were \( \text{₦}60,000 \), selling expenses \( \text{₦}40,000 \) and interest expense \( \text{₦}12,000 \). Tax is charged at \(30\%\) of profit before tax. Determine the net profit for the year.
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About This Question
This is Neco 2024 Financial Accounting Question 16. It is one of the objective questions from the 2024 Neco Financial Accounting examination.
Difficulty level: Medium .
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