A Business Has Opening Inventory of 200 Units Which Cost

question 15

Multiple Choice

A business has opening inventory of 200 units which cost £5.00 per unit and during the year it bought an additional 300 units at £6.00 and 400 units at £7.00. It sold 800 units during the same period. What is the cost of the closing inventory using the first in first out method of valuation?

• A) £500
• B) £600
• C) £700
• D) £623
• E) None of the above

Recognize the allocation and reporting of income and deductions for sole proprietors.

Determine the impact of vehicle expenses and listed property on taxable business income.

Analyze the treatments of bad debts in a business context.

Distinguish between ordinary and necessary business expenses.

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Definitions:

Autonomy

The degree of independence and self-direction that an individual or entity has to make decisions, often within a particular role or workplace.

Responsibility

The state or fact of being accountable or to blame for something, involving the acceptance of duty to complete tasks and make decisions.

Confidence

The belief in oneself and one's ability to succeed or accomplish a task.

Positive Outcomes

Refers to favorable or beneficial results or effects of decisions, actions, or conditions.