If the gross value including 20% VAT is 240, what is the net value?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Study for the AAT Level 2 Introduction to Bookkeeping Test. Use flashcards and multiple choice questions with hints and explanations. Prepare effectively for your exam!

Multiple Choice

If the gross value including 20% VAT is 240, what is the net value?

Explanation:
VAT is added to the net price to give the gross amount, so gross = net × (1 + VAT rate). With a 20% rate, the gross value is 1.20 times the net value. To find the net value, divide the gross by 1.20. 240 ÷ 1.20 = 200. The VAT portion would be 240 − 200 = 40, which is 20% of the net price. So the net value is 200.

VAT is added to the net price to give the gross amount, so gross = net × (1 + VAT rate). With a 20% rate, the gross value is 1.20 times the net value. To find the net value, divide the gross by 1.20. 240 ÷ 1.20 = 200. The VAT portion would be 240 − 200 = 40, which is 20% of the net price. So the net value is 200.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy