Neco Model Questions Vol1 2022 Commerce Question 19

Practice objective / multiple choice question 19 from the 2022 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2022 Commerce Objective / Multiple Choice Hard Difficulty
Question 19 NECO_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • objective

A company's income statement shows sales revenue of \(\text{₦}5\,000\,000\). Cost of goods sold is 60 % of sales. Operating expenses consist of salaries of \(\text{₦}400\,000\), a variable component equal to 5 % of sales, and depreciation of \(\text{₦}150\,000\). Interest expense equals 2 % of the loan balance (which is unknown). Net profit before tax is \(\text{₦}800\,000\) and tax is 30 % of profit before tax. What is the loan balance (in naira)?

Answer Options

A. 25000000
B. 18000000
C. 15000000
Correct Answer D. 20000000
Correct Answer
D
Correct Option:
20000000

About This Question

This is Neco Model Questions Vol1 2022 Commerce Question 19. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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