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If the mark-up on cost is 20%, please and the selling price(Excl. VAT) is R600, which of the following amounts is the correct Cost Price(Excl. VAT)? O A. R100 OB. R580 O C. R575 O D. R500

If the mark-up on cost is 20%, please and the selling price(Excl. VAT) is R600, which of the following amounts is the correct Cost Price(Excl. VAT)? O A. R100 OB. R580 O C. R575 O D. R500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 3 A manufacturer sells his final product for R300 plus VAT (@15%) to a wholesaler. The wholesaler sells the product at a mark-up of 20% above cost to the manufacturer. If the retailer's mark-up on cost is 25%, the final consumer will pay......(including VAT). A. R414 OB. R517.50 O C. R450.00 OD. R360.00 QUESTION 4 If the VAT exclusive price of an item is R 650, which of the following is the VAT inclusive price? O A. R784.23 OB. R97.50 O C.R747.50 O D. R565.22
Transcribed Image Text:QUESTION 3 A manufacturer sells his final product for R300 plus VAT (@15%) to a wholesaler. The wholesaler sells the product at a mark-up of 20% above cost to the manufacturer. If the retailer's mark-up on cost is 25%, the final consumer will pay......(including VAT). A. R414 OB. R517.50 O C. R450.00 OD. R360.00 QUESTION 4 If the VAT exclusive price of an item is R 650, which of the following is the VAT inclusive price? O A. R784.23 OB. R97.50 O C.R747.50 O D. R565.22
QUESTION 1 If the mark-up on cost is 20%, please and the selling price(Excl. VAT) is R600, which of the following amounts is the correct Cost Price(Excl. VAT)? O A. R100 OB. R580 O C. R575 O D. R500 QUESTION 2 Which one of the following statements with respect to VAT is false? O A. There is no indication of a VAT charge next to zero-rated item listed on an invoice. O B. In general, no input VAT claim is allowed by SARS on the purchase of a double-cab delivery vehicle. O C. The buyer of zero rated supplies will not get any refund from SARS for buying usch an item. O D. If a vendor sells only VAT exempt supplies, it may not register for VAT.
Transcribed Image Text:QUESTION 1 If the mark-up on cost is 20%, please and the selling price(Excl. VAT) is R600, which of the following amounts is the correct Cost Price(Excl. VAT)? O A. R100 OB. R580 O C. R575 O D. R500 QUESTION 2 Which one of the following statements with respect to VAT is false? O A. There is no indication of a VAT charge next to zero-rated item listed on an invoice. O B. In general, no input VAT claim is allowed by SARS on the purchase of a double-cab delivery vehicle. O C. The buyer of zero rated supplies will not get any refund from SARS for buying usch an item. O D. If a vendor sells only VAT exempt supplies, it may not register for VAT.
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