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WAEC Commerce 2000 Question 7

Question 7

Business Calculations

Use the following equation: Gross Profit = (Closing stock + P) less (Opening stock + G).
What is P in the above equation?

  1. A.Purchases returns
  2. B.Net Profit
  3. C.Sales
  4. D.Carriage outwards
Show the answer and explanation

Answer: C (Sales)

Explanation

Gross profit = (closing stock + sales) − (opening stock + purchases), so P is sales.