33. If a company buys goods for £50, and then sells half of these for £100. How much profit would be recognised?

A. £25

B. £50

C. £75

D. £100

Answer : C

The amount of goods that were sold is half, therefore the other half is still in stock with a value of £25. So £25 of goods were sold, for £100, meaning a gross profit of £75.