WAEC Accounting 2020 Objective — Question 16
Question 16 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.
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The purpose of preparing trading account is to ascertain average stock. A. gross profit B. cost or good sold. C. cost of goods available for sale.
- A. average stock
- B. gross profitCorrect
- C. cost or good sold
- D. cost of goods available for sale
Explanation
The main aim of preparing the trading account is to recognize/ascertain the gross profit made on goods, before other expenses are deducted.
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