WAEC Accounting 2022 Objective — Question 25

Question 25 of 50 from the West African Examinations Council (WAEC) Accounting 2022 Objective paper, with the correct answer and a full explanation.

Use the following information to answer questions 25 and 26. GH¢ Sales 200,000 Purchases 170,000 Opening stock 40,000 Closing stock 50,000 The gross profit percentage is

A. 25%
B. 20%Correct
C. 15%
D. 10%

Explanation

Cost of goods sold = 40,000+170,000−50,000=160,000. Gross profit = 200,000−160,000=40,000. Gross profit % = 40,000/200,000 × 100 = 20%.

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