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

Preparation of financial statements — practice question

A company’s draft financial statements for the year ended 30 June showed the following: revenue $280000 gross profit $60000 It was later found that closing inventory had been recorded $10000 too low. What gross profit margin should be reported after this error is corrected?

  • A17.9%
  • B20.7%
  • C21.4%
  • D25.0%

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