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WAEC Commerce 1998 Question 80

Question 80

Business Calculations

Gross profit is correctly ascertained by

  1. A.adding opening stock to purchases
  2. B.adding closing stock to sales
  3. C.subtracting returns outwards from purchases
  4. D.subtracting returns inwards from sales
  5. E.subtracting cost of goods sold from sales
Show the answer and explanation

Answer: E (subtracting cost of goods sold from sales)

Explanation

Gross profit = sales − cost of goods sold.