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WAEC Financial Accounting 2024 Question 25

Question 25

Incomplete Records

Use the following information to answer questions 24 and 25.
The margin for a business is 2/5 and the cost of sales is $120,000.
The sales value for the business is

  1. A.$216,000.
  2. B.$204,000.
  3. C.$200,000.
  4. D.$192,000.
Show the answer and explanation

Answer: C ($200,000.)

Explanation

Cost is 3/5 of sales, so sales = 120,000 × 5/3 = $200,000.