Waec Model Questions Vol1 2020 Financial Accounting Question 42
Practice objective / multiple choice question 42 from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
A merchandising firm has the following information for the year ended 31 December: - Opening stock: ₦90,000 - Closing stock: ₦60,000 - Gross profit ratio: 25 % of sales - Cash receipts from customers: ₦500,000 - Cash payments to suppliers: ₦300,000 - Operating expenses paid in cash: ₦70,000 - Opening cash balance: ₦30,000 - Closing cash balance: ₦40,000 - Opening trade debtors: ₦80,000 - Closing trade debtors: ₦100,000 - Opening trade creditors: ₦50,000 - Closing trade creditors: ₦70,000 Assume that all purchases and sales are on credit except for the cash receipts and cash payments shown. Determine the total purchases for the year.
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About This Question
This is Waec Model Questions Vol1 2020 Financial Accounting Question 42. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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