Module 4 Flashcards

1
Q

How to calculate cost of sales?

A

Opening inventory + purchases - closing inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

If you have accruals and prepayments on a trail balance they are

A

Last years

Opening accruals and prepayments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Markup

A

Sales 140
COS 100
Profit 40

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Margin

A

Sales 100
COS 60
Profit 40

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Inventory in trial balance has to be

A

Opening inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does FIFO stand for?

A

First in first out

Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does AVCO stand for?

A

Weighted average cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which inventory valuation policies can you use?

A

FIFO

AVCO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which inventory valuation policy can’t you use in financial accounting?

A

LIFO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Valuation should be

A

Lower of cost and net realisable value (NRV, what you can seek it for)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Gross profit margin calculation

A

Gross profit / sales X 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Gross profit markup calculation

A

Gross profit / cost of sales X 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Valuation should be in keeping with what concept?

A

Prudence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly