Discount allowed is shown in financial statements as
An asset
An income
A liability
An expenses
Correct answer is D
Expenses are total amount paid or to be paid for resources used in the accounting period e.g wages, electricity, discount allowed, carriage outward etc.
₦5,000
₦8,000
₦2,000
₦3,000
Correct answer is B
No explanation has been provided for this answer.
₦3,000
₦4,000
₦1,000
₦2,000
Correct answer is B
No explanation has been provided for this answer.
Lighting and cooling expenses
Carriage outwards
Carriage inwards
Selling and distribution expenses
Correct answer is C
Carriage inwards, discounts received are suggested basis of allocation for purchases.
If sales is D 12,000 and the gross profit mark -up percentage is 25%. What is the cost of sales?
D 2,400
D 9,000
D 9,600
D 3,000
Correct answer is B
Calculate the gross profit using the gross profit mark-up percentage:
Gross Profit = Sales Amount * (Gross Profit Mark-up Percentage / 100)
Gross Profit = D12,000 * (25 / 100)
Gross Profit = D12,000 * 0.25
Gross Profit = D3,000
Calculate the cost of sales by subtracting the gross profit from the sales amount:
Cost of Sales = Sales Amount - Gross Profit
Cost of Sales = D12,000 - D3,000
Cost of Sales = D9,000
Therefore, the cost of sales is D9,000.