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WAEC Accounting 2016 Objective — Question 16

Question 16 of 50 from the West African Examinations Council (WAEC) Accounting 2016 Objective paper, with the correct answer and a full explanation.

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16. The excess of cost of goods sold over net sales is A. gross profit B. gross loss C. net profit D. net loss Use the following information to answer questions 17 and 18 Rent prepaid 1/01/2014: N600; Rent paid 31/12/2014: N3,000; Rent prepaid 31/12/2014: N400

  • A. gross profit
  • B. gross lossCorrect
  • C. net profit
  • D. net loss

Explanation

Gross loss occurs when cost of goods sold is greater than the net sales.

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