Neco Model Questions Vol1 2024 Financial Accounting Question 41
Practice objective / multiple choice question 41 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
A merchandising firm has the following information for the year: Sales \(\text{₦}500,000\), sales returns \(\text{₦}20,000\); opening stock \(\text{₦}80,000\); purchases \(\text{₦}250,000\), purchase returns \(\text{₦}10,000\); freight‑in \(\text{₦}5,000\); closing stock \(\text{₦}90,000\). Operating expenses are salaries \(\text{₦}45,000\) and rent \(\text{₦}15,000\). Equipment was originally costed at an amount that gave a straight‑line depreciation of \(\text{₦}12,000\) per year at a rate of \(10\%\). At the start of the year the equipment was revalued upward by \(\text{₦}30,000\). Determine the net profit for the year.
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This is Neco Model Questions Vol1 2024 Financial Accounting Question 41. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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