Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A trader’s income statement showed sales of $10000$ and cost of sales of $7070$. During the year, the trader withdrew goods for personal use, with a cost of $280$ and a selling price of $410$, but this had not been entered. What impact did the omission have on gross margin?

  • A$2.8\%$ overstated
  • B$2.8\%$ understated
  • C$4.1\%$ overstated
  • D$4.1\%$ understated

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI