Inventory

Service businesses refer to their main revenue as fees, trading firms refer to their main revenue as..

• Inventory

• Sales

• Stock

• Income

What type of business 'uses up' and 'expenses' Supplies and Materials?

• Trading

• Service

T/F: Is GST recorded on the inventory card?

• True

• False

First In, First Out is

• an assumption that the inventory purchased first is sold first

• the reality that the inventory purchased first is sold first

• an assumption that the inventory purchased last will be sold first

• a dance move

Cost of sales

• Is the revenue generated from selling inventory

• The value of inventory recorded in the inventory cards

• Net profit minus Expenses

• Expenses incurred when inventory is sold

Gross Profit is

• Revenue Less Expenses

• The profit earned purely from the purchase and sale of inventory

• The same as Net Profit

• The same as Sales Revenue

T/F: A LARGE black tshirt and a MEDIUM black tshirt would share the same inventory card

• True

• False

T/F: The only value ever recorded on the inventory card is the cost price

• TRUE

• FALSE

In the details column of the inventory card you would write..

• your phone number

• the source document number

• the name of the accounts affected

• the number of inventory items remaining

Stock losses will result in ...

• An increase in Revenue

• An increase in Expenses

• An increase in Assets

• An decrease in Liabilities