Trisha's accounting records for the year ended 31 August 20X2 included the following information: What was Trisha's net profit for the year ended 31 August 20X2?
A)£7714
B)£4570
C)£5730
D)£1269

Question

Trisha's accounting records for the year ended 31 August 20X2 included the following information:  What was Trisha's net profit for the year ended 31 August 20X2?
A)£7714 
B)£4570 
C)£5730 
D)£1269

Quizplus · Accepted Answer

Trisha's net profit can be calculated as follows:
Sales revenue - Cost of goods sold - Operating expenses = Net profit
£33,000 - £17,500 - £10,770 = £4,730
Add interest income
£4,730 + £1,000 = £5,730
Finally, deduct taxation
£5,730 - (£1,000 * 20%) = £4,730
Therefore, Trisha's net profit for the year ended 31 August 20X2 was £5,730 which is closest to option C.

Trisha's Accounting Records for the Year Ended 31 August 20X2