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.

Neco Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 41 NECO_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

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.

Answer Options

A. 160000
B. 190000
Correct Answer C. 170000
D. 173000
Correct Answer
C
Correct Option:
170000

About This Question

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 .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support