Grade 11 Class test (Inventory)

There is better control over stock

• FIFO

• Perpetual system

• LIFO

• Periodic system

It is cost-effective as there is no outlay for expensive equipment

• FIFO

• Perpetual system

• Specific Identification

• Periodic system

It is not necessary to calculate cost of sales on a continuous basis

• Periodic system

• Weighted Average

• Perpetual system

• Last In First Out

The value of unsold stock in the previous year

• Closing stock

• Cost of sales

• Cost of production

• Opening stock

The value of unsold stock in the current year

• Closing stock

• Opening stock

• Work in Progress at end

• Cost of sales

The ___ system is suitable for businesses where it is difficult or not feasible to determine the cost price of single items.

Theft/leakages are easily/quickly detected.

• FIFO

• Periodic system

• Perpetual

• Internal control

Stock purchases are recorded in a nominal account called 'Purchases' (expense account)

• Perpetual system

• Periodic system

• FIFO

• WAM

When stock is sold for 'Cash' (Perpetual)

• Dr Bank & Cr Cost of Sales

• Dr Creditors control & Cr Trading stock

• Dr Bank & Cr Trading stock

• Dr Debtors control & Cr Trading stock

The sequence is as follows: 1, 2, 4, 8, 16, 32, …

Can you determine the next number in the sequence?