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WAEC Financial Accounting 2017 Question 46

Question 46

Branch Accounts

Which of the following is not a method of charging goods to branch by its head office?

  1. A.Net realizable value
  2. B.Cost price
  3. C.Cost plus profit
  4. D.Selling price
Show the answer and explanation

Answer: A (Net realizable value)

Explanation

Goods are invoiced to branches at cost, cost plus a mark-up, or selling price; net realisable value is not used.