Accounting Inventory

The cost of sales is recorded in every sales transaction

• Periodic system

• FIFO

• Perpetual inventory system

• Specific identification method

The most recent purchases will be considered as closing stock in the____stock valuation method

• Weighted-average

• FIFO

Carriage on purchases is recorded as an_____in the periodic inventory system.

• Asset

• Expense

This method is most suitable for inexpensive goods purchased regulary.

• Perpetual inventory system

• Periodic inventory system

• Weighted average

• FIFO

The closing stock balance is recorded at the most recent prices

• FIFO

• Perpetual inventory system

• Specific identification method

• Periodic system

Individual stock items are valued at the cost price on the purchase invoice

• Weighted average

• FIFO

• Perpetual inventory system

• Specific identification

Merchandise purchased is recorded in a Trading Stock Account in the _____inventory system.

Which ones are advantages of periodic inventory system

• Easy to access

• Cheaper and easy to use

• No need to calculate cost of sales everyday

the formula for calculating cost of sales

• Opening stock+purchases+carriage on purchases-opening stock

• closing stock+purchases+carriage on purchases-opening stock

• Opening stock+sales+carriage on purchases-closing stock

• Opening stock+purchases+carriage on purchases- Closing stock

• Opening stock+purchases+carriage on purchases+Closing stock

Import duties is income from foreign purchases

• False

• True