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

Preparation of financial statements — practice question

William purchases radios at $10 each and sells them at $15 each. In his draft statement of financial position, inventory was shown at $1500. The way he calculated inventory was correct. Afterwards, he discovered that 12 radios could be sold only at $8 each and that 4 radios had been stolen. By what amount should William reduce his inventory valuation?

  • A$64
  • B$84
  • C$124
  • D$144

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