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GCE Accounting 2022 Objective — Question 14

Question 14 of 50 from the General Certificate of Education (GCE) Accounting 2022 Objective paper, with the correct answer and a full explanation.

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A trader bought goods worth N16,000 and sold three-quarters of it for N20,000. The gross profit is

  • A. N12,000
  • B. N8,000Correct
  • C. N6,000
  • D. N4,000

Explanation

Cost of goods sold = 3/4 x 16,000 = N12,000. Gross profit = Sales - COGS = 20,000 - 12,000 = N8,000.

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