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WAEC Financial Accounting 2020 Question 16

Question 16

Final Accounts of a Sole Trader

The purpose of preparing trading account is to ascertain

  1. A.average stock.
  2. B.gross profit.
  3. C.cost of goods sold.
  4. D.cost of goods available for sale.
Show the answer and explanation

Answer: B (gross profit.)

Explanation

The trading account shows gross profit.