Inventory SAC

How do you report this in an inventory card:

CASH SALE

• OUT entry with Receipt

• IN entry with Receipt

• OUT entry with Invoice

• IN entry with Invoice

How do you report this in an inventory card:

CREDIT PURCHASE OF NEW INVENTORY

• OUT entry with Receipt

• IN entry with Receipt

• OUT entry with Invoice

• IN entry with Invoice

How do you report this in an inventory card:

SALES RETURN (customer has returned something)

• OUT entry with Memo

• IN entry with Memo

• OUT entry with Credit Note

• IN entry with Credit Note

How do you report this in an inventory card:

OWNER WITHDREW INVENTORY TO TAKE HOME

• OUT entry with Memo

• IN entry with Memo

• OUT entry with Credit Note

• IN entry with Credit Note

Businesses determine inventory loss or gain using a

• Item count

• Physical stocktake

• Stock check

• Physical check

Which of these is a valid reason for using FIFO accounting?

• It's more accurate

• It always makes profit seem higher

• It's more efficient

• It ensures that older goods are sold first

Adding up all the OUT entries (excluding memos and credit notes) gives you:

• Cost of Goods Sold

• Gross Profit

• Sales Revenue

• Cost of Sales

Applying a given markup to all the OUT entries (excluding memos and credit notes) will give you:

• Cost of Goods Sold

• Gross Profit

• Sales Revenue

• Cost of Sales

Gross Profit = $4000

Inventory Closing Balance: 4 - 20 - 80

Physical Count Reveals: 5 - 20 - 100

Adjusted Gross Profit = ?

• $4100

• $3900

• $4020

• $3980

Which of these is the correct order for the income statement?

• Revenues, Sales Revenue, Cost of Goods Sold, Cost of Sales

• Sales Revenue, Revenues, Cost of Goods Sold, Cost of Sales

• Revenues, Sales Revenue, Cost of Sales, Cost of Goods Sold,

• Sales Revenue, Revenues, Cost of Sales, Cost of Goods Sold,