Posted by AccountingQuizzes on Monday, December 22, 2014

Once you try it yourself, you may check the answer of this accounting quiz here with relevant details.

## Calculate Gross Profit

In this Accounting Quiz you are required to calculate the Gross Profit from the given data.

Gross Profit = Sales – Cost of Goods Sold

It is very easy to understand that the trader bought all the goods for $10,000. That means the total cost of goods is $10,000. However he did not sell all the goods he bought. If you read it carefully you can easily conclude that half of the goods were sold. So, if the total cost of Goods bought by the trader was $10,000, then what will be the cost of the goods he sold. He actually sold half of the goods, so definitely the cost of goods he sold will be $5,000.

At what amount the trader sold half of the goods he bought. It is given in the accounting quiz that the sales amount was $7,500.