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WAEC Financial Accounting 2013 Question 22

Question 22

Final Accounts of a Sole Trader

Which of the following is determined in the Trading Account?

  1. A.Factory overheads
  2. B.Cost of goods sold
  3. C.Prime cost
  4. D.Net profit
Show the answer and explanation

Answer: B (Cost of goods sold)

Explanation

The trading account sets cost of goods sold against sales to find gross profit. Prime cost and overheads are in the manufacturing account; net profit is in profit and loss.