Subsection 4.5. Valuation of inventory for Accounting, O Level - revisedeck

4.5. Valuation of inventory

A subsection of Accounting, 7707, through 4. Accounting procedures

Listing 10 of 30 questions

A trader provided the following information about his inventory at the end of his financial year. total number of units cost price of each unit $4 net realisable value of each unit $6 80 units were damaged and could be sold for $3 per unit. What was the value of the closing inventory?

7707_w22_qp_13

MCQ

2022

Paper 1, Variant 3

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A trader values his inventory on the same basis at the end of each financial year. Which accounting principle is the trader observing?

7707_w23_qp_12

MCQ

2023

Paper 1, Variant 2

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The average inventory of a business was $40000. The rate of inventory turnover was 5 times a year. Mark-up was 20%. What was the revenue for the year?

7707_w24_qp_13

MCQ

2024

Paper 1, Variant 3

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Gordon provided the following information for the year. revenue $90 000 opening inventory $8 000 closing inventory $2 000 mark up 50% Gordon took goods, $7000, for his own use. What were the purchases?

7707_s20_qp_11

MCQ

2020

Paper 1, Variant 1

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Gordon provided the following information for the year. revenue $90 000 opening inventory $8 000 closing inventory $2 000 mark up 50% Gordon took goods, $7000, for his own use. What were the purchases?

7707_s20_qp_12

MCQ

2020

Paper 1, Variant 2

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Which actions could a clothing retailer take to improve his rate of inventory turnover?

7707_s22_qp_11

MCQ

2022

Paper 1, Variant 1

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Alex purchased goods costing $1000. She planned to resell the goods at a mark-up rate of 25%. These goods were unsold at the year end and were found to be damaged. Alex estimated that they could be sold for $600. What value should be shown...

7707_s24_qp_12

MCQ

2024

Paper 1, Variant 2

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Roshan’s sales for his first year of trading were $55 000. His gross profit margin was 20%. The closing inventory was $3200. D $47 200 C $44 450 What were the purchases for the year?

7707_s24_qp_12

MCQ

2024

Paper 1, Variant 2

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Abhinav provided the following information. year ended 31 December 2020 $ year ended 31 December 2019 $ 124 000 120 000 112 500 115 500 purchases cost of sales $ inventory January 2019 31 December 2019 31 December 2020 What was the rate of inventory turnover for the year ended 31 December 2020?

7707_s24_qp_12

MCQ

2024

Paper 1, Variant 2

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Roshan’s sales for his first year of trading were $55 000. His gross profit margin was 20%. The closing inventory was $3200. What were the purchases for the year?

7707_w21_qp_13

MCQ

2021

Paper 1, Variant 3

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Questions Discovered

30