Accounting Online Program Certification Practice Test

To find the corrected gross profit for Catt plc for the year ending 31 May 20X1, we need to understand that gross profit is calculated as sales revenue minus the costs of goods sold (COGS). The context surrounding the question likely involves discrepancies or adjustments made to sales revenue or COGS that could have affected the reported gross profit. If the correct figure for gross profit is £99,996, this implies that adjustments were made to either the sales figures or the costs that led to this specific outcome. For example, if errors were found in inventory valuation or if there were returns that had not been accounted for, these would affect the gross profit. When adjustments are accurately incorporated into the calculations, they would lead to the correct figure that reflects the operational performance of Catt plc during that fiscal period. In summary, £99,996 represents the accurate gross profit after considering any necessary corrections from the original figures reported, indicating a thorough understanding of the accounting principles governing revenue and expense recognition.