Question 1

Section B - Case 2: Single Entity Accounts

**Scenario: AquaHarvest Marine Farms**
AquaHarvest prepares its financial statements for the year ended 30 September 20X6. 
Draft Revenue: $500,000
Draft Cost of Sales: $300,000
Draft Current Assets: $60,000
Draft Current Liabilities: $40,000

Calculate the draft Gross Profit Margin as a percentage. (Enter the number only, e.g., 40)

Accepted Answer

Gross Profit = Revenue - Cost of Sales. Gross Profit Margin = (Gross Profit / Revenue) × 100.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Calculating mark-up (Gross Profit / Cost of Sales = 66.7%) instead of margin.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 5

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