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

Preparation of financial statements — practice question

At the end of his first year of trading, a business owner gave the information below. ending inventory $15\,000 cash paid to suppliers $60\,000 amount still owed to suppliers $5\,000 cash received from customers $85\,000 amount still owed by customers $10\,000 Calculate the gross profit for the year.

  • A$10\,000
  • B$15\,000
  • C$25\,000
  • D$45\,000

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