Ben Started Trading on 1 January

question 4

Multiple Choice

Ben started trading on 1 January. His trial balance at 31 December, the end of his first year of trading is given below.
If the closing inventory at 31 December was £5,000 and depreciation is to be ignored, which one of the following is true?

• A) The gross profit will be £31,500 and the net profit will be £25,000.
• B) The gross profit will be £36,000 and the net profit will be £9,000.
• C) The gross profit will be £31,000 and the net profit will be £3,000.
• D) The gross profit will be £36,000 and the net profit will be £3,000.

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Definitions:

Amino Acid

Organic compounds that serve as the building blocks of proteins, necessary for the growth and repair of body tissues.

Introns

Non-coding sections of DNA or RNA that are removed before the final mRNA is formed in eukaryotic cells.

Nucleotide Sequences

The order of nucleotides in a DNA or RNA molecule that determines genetic information.

Double-stranded DNA

The normal form of DNA, consisting of two parallel strands of nucleotides wound around each other in a helix.