passwella.
Menu

WAEC Financial Accounting 2005 Question 41

Question 41

Branch Accounts

Where goods are invoiced by a firm its branch at cost-plus, the branch stock adjustment account is used to determine

  1. A.cost price
  2. B.branch profit
  3. C.selling price
  4. D.branch expenses.
Show the answer and explanation

Answer: B (branch profit)

Explanation

The branch stock adjustment account removes the loading and shows the branch gross profit.