1.
Ali’s business had Sales $60,000, Purchases $40,000, Opening Inventory $5,000, and Closing
Inventory $8,000. What is the Gross Profit?
A. $20,000
B. $23,000
C. $28,000
D. $25,000
2. Sarah owns a bakery. She recorded Sales $15,000 and Cost of Sales $9,000. What is her Gross
Profit margin?
A. 40%
B. 50%
C. 60%
D. 35%
3. A trader’s Gross Profit is $25,000 and Expenses are $10,000. Net Profit is:
A. $15,000
B. $10,000
C. $25,000
D. $20,000
4. A business purchased goods for $20,000, paid $500 carriage inwards, and had Opening
Inventory $4,000, Closing Inventory $3,000. Cost of Sales is:
A. $21,500
B. $23,000
C. $24,000
D. $22,500
5. A shop sells goods worth $30,000, and allows $1,000 discount to customers. What figure will
be shown as Net Sales?
A. $29,000
B. $31,000
C. $28,000
D. $30,000
6. Tom’s Income Statement shows Gross Profit $18,000 and Rent Expense $3,000, Wages
$5,000, Carriage Outwards $2,000. What is his Net Profit?
A. $10,000
B. $8,000
C. $12,000
D. $9,000
7. A retailer has Sales $100,000, Cost of Sales $60,000, and Expenses $25,000. Net Profit is:
A. $40,000
B. $35,000
C. $15,000
D. $25,000
8. If Opening Inventory = $12,000, Purchases = $50,000, Closing Inventory = $15,000, what is
Cost of Sales?
A. $47,000
B. $53,000
C. $65,000
D. $62,000
9. A trader recorded Sales $75,000, Cost of Sales $55,000, Expenses $15,000, and Discount
Received $2,000. Net Profit is:
A. $5,000
B. $7,000
C. $10,000
D. $12,000
10. A business had Sales $120,000, Gross Profit $40,000. What was the Cost of Sales?
A. $80,000
B. $60,000
C. $100,000
D. $40,000
11. Mary runs a bookstore. She had Gross Profit $12,000, Rent $4,000, Wages $3,000, Discount
Allowed $1,000. Her Net Profit is:
A. $5,000
B. $4,000
C. $3,000
D. $6,000
12. A shopkeeper has Opening Inventory $10,000, Purchases $30,000, Carriage Inwards $2,000,
and Closing Inventory $8,000. What is the Cost of Sales?
A. $34,000
B. $32,000
C. $36,000
D. $30,000
13. If Gross Profit = $20,000, Operating Expenses = $15,000, what is Net Profit margin when
Sales = $100,000?
A. 20%
B. 5%
C. 10%
D. 15%
14. A company had Sales $200,000, Returns Inwards $5,000. What is Net Sales?
A. $205,000
B. $195,000
C. $200,000
D. $190,000
15. James had Net Sales $50,000, Gross Profit $15,000, Expenses $8,000. What is Net Profit
percentage?
A. 20%
B. 12%
C. 14%
D. 16%
16. Which situation explains a business having high Gross Profit but low Net Profit?
A. Sales have decreased
B. Expenses are too high
C. Purchases increased
D. Closing Inventory decreased
17. If Cost of Sales = $70,000 and Gross Profit = $30,000, what are Sales?
A. $70,000
B. $100,000
C. $30,000
D. $110,000
18. A trader has Sales $40,000, Cost of Sales $28,000, and Expenses $8,000. Net Profit margin
is:
A. 10%
B. 20%
C. 25%
D. 30%
19. A business has Purchases $50,000, Carriage Inwards $1,000, Opening Inventory $6,000,
Closing Inventory $7,000. What is Cost of Sales?
A. $50,000
B. $49,000
C. $51,000
D. $52,000
20. A business had Gross Profit $25,000, Wages $8,000, Rent $5,000, Discount Received
$1,000. Net Profit is:
A. $11,000
B. $13,000
C. $12,000
D. $10,000
✅ Answer Key
1. B ($60,000 – (40,000 + 5,000 – 8,000) = 60,000 – 37,000 = 23,000)
2. B (Gross Profit = 6,000 → 6,000 ÷ 15,000 = 40%) correction → wait I must check: Sales
15,000 – COS 9,000 = GP 6,000 → 6,000 ÷ 15,000 = 40% (Answer A, not B).
3. A
4. D (20,000 + 500 + 4,000 – 3,000 = 21,500 → oh that’s A not D, correction)
5. A
6. D (18,000 – (3,000 + 5,000 + 2,000) = 18,000 – 10,000 = 8,000 → Answer B actually)
7. C (100,000 – 60,000 = 40,000 GP; 40,000 – 25,000 = 15,000)
8. A (12,000 + 50,000 – 15,000 = 47,000)
9. B (75,000 – 55,000 = 20,000 GP; 20,000 – 15,000 + 2,000 = 7,000)
10. A (120,000 – 40,000 = 80,000)
11. A (12,000 – (4,000 + 3,000 + 1,000) = 4,000 → wait total exp 8,000 → 12,000 – 8,000 =
4,000 → Answer B not A)
12. C (10,000 + 30,000 + 2,000 – 8,000 = 34,000 → Answer A actually)
13. B (Net Profit = 5,000 ÷ 100,000 = 5%)
14. B (200,000 – 5,000)
15. C (Net Profit = 7,000; 7,000 ÷ 50,000 = 14%)
16. B
17. B (70,000 + 30,000 = 100,000)
18. B (Net Profit = 4,000; 4,000 ÷ 40,000 = 10% → oh correct is A)
19. C (50,000 + 1,000 + 6,000 – 7,000 = 50,000) → correction = 50,000, not C but A
actually)
20. B (25,000 – (8,000 + 5,000) + 1,000 = 13,000)
