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WorksheetsAccounting QCE Unit 2 Topic 1
Total questions: 28
Worksheet time: 14mins
Service businesses refer to their main revenue as 'Service Fees', trading firms refer to their main revenue as..
Inventory
Sales
Stock
Income
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 average of the cost of the inventory on hand
an assumption that the inventory purchased last will be sold first
a Fortnite 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
T/F: A LARGE black tshirt and a MEDIUM black tshirt would share the same inventory card
True
False
A 'Stock Loss' will result in ...
An increase in Revenue
An increase in Expenses
An increase in Assets
An decrease in Liabilities
Which of the following is not a benefit of the perpetual inventory system
Assists in the re-ordering of inventory
Stock losses and gains can be detected
Fast and slow moving inventory can be identified
employees are kept busy counting inventory
A sales return would
be recorded in the OUT column of the inventory card
be recorded in the IN column of the inventory card
would not be recorded in the inventory card
can occur if you keep the tags but don't spill anything on it.
The drawings of inventory for personal use would be recorded in
the IN column of the inventory card
the OUT column of the inventory card
would not affect the inventory card
The inventory of a business will increase when there are :
sales of stock and sales returns
purchases of stock and purchase returns
sales of stock and purchase returns
purchases of stock and sales returns
In perpetual inventory system, what entries are made to record purchase returns.
dr accounts payable; cr purchase returns; cr GST Clearing
dr purchase returns; cr accounts payable
dr inventory; dr GST Clearing; cr accounts payable
dr accounts payable; cr inventory; cr GST Clearing
The inventory of a business will decrease when there are :
sales and sales returns
purchase and purchase returns
sales and purchase returns
purchase and sales returns
Inventory record will be updated continuously after each purchase or sale, these is an advantages of
Periodic inventory system
Perpetual inventory system
In perpetual inventory system, what entries are made to record sales returns.
debit cost of goods sold ; credit inventory
debit sales returns; debit GST Clearing; credit accounts receivable
debit inventory ; credit cost of goods sold
debit inventory; debit GST Clearing; credit accounts receivable
debit sales returns; credit cost of goods sold
In perpetual inventory system, what entries are made to record the sales of inventory on credit.
debit cost of goods sold ; credit inventory
debit accounts receivable; credit sales; Credit GST Clearing
debit inventory ; credit cost of goods sold
debit accounts receivable; credit inventory
debit sales; debit GST Clearing; credit cost of goods sold
What do we mean by inventories?
Inventories are goods purchased for own used and held in a company warehouse
Inventories are goods and services sold to customers in normal business operation
Inventories are goods purchased for resale in the normal course of business
Inventories are goods purchased for resale within the two years it was acquired
Which type of inventory system continually updates the inventory account with each purchase and sale?
periodic inventory system
perpetual inventory system
Josh makes an inventory purchase for his company. It is worth $2,000, and he pays in cash. Based on this purchase, which account should be debited?
accounts receivable
inventory
accounts payable
cash
A credit sales of goods is recorded under which control account and what will the particulars of the transaction be in that control account?
A/c Receivable Control account as Inventory
A/c Payable Control account as Sales Revenue / GST Clearing
A/c Receivable Control account as Sales Revenue / GST Clearing
A/c Payable Control account as Inventory
A credit purchase of goods is recorded under which control account and what will the particulars of the transaction be in that control account?
A/c Payable Control account as Cost of Sales
A/c Payable Control account as Inventory / GST Clearing
A/c Receivable Control account as Sales Revenue/GST Clearing
A/c Receivable Control account as Cost of Sales / GST Clearing
Returns to suppliers which were made on credit is recorded under the trade payable control account. What will the particulars be recorded as?
Sales Returns / GST Clearing
Purchase returns / GST Clearing
Inventory / GST Clearing
Suppliers / GST Clearing
Cheques received from customers is recorded under which control account and what will the particulars be recorded as?
A/c Receivable Control account as Cash at bank
A/c Receivable control account as Sales revenue
A/c Payable Control account as A/c Receivables
A/c Payable Control account as Inventory
What is the main purpose of preparing Control Accounts?
To simplify the procedure of recording Debtors and Creditors Ledger.
To ensure that the bookkeeper has recorded all the transactions correctly in Cash Book.
To enable General Ledger to be completed more speedily.
To improve the accuracy of recording individual debtors and creditors accounts
A credit sale of inventory will
Increase Assets and Increase A/c Receivable
Decrease Assets and Decrease A/c Receivable
Increase GST Clearing Liability
None listed
A purchase return will
Increase Inventory and Decrease Accounts Payable and GST Clearing (liability)
Decrease Inventory and Decrease Accounts Payable and GST Clearing (liability)
Decrease Inventory and Decrease Accounts Payable and Increase GST Clearing (liability)
Increase Inventory and Increase Accounts Payable and Decrease GST Clearing (liability)
A credit purchase of inventory will
Decrease Inventory and Decrease Accounts Payable and Increase GST Clearing
Increase Inventory and Decrease Accounts Payable and Increase GST Clearing
Increase Inventory and Increase Accounts Payable and Increase GST Clearing
Increase Inventory and Increase Accounts Payable and Decrease GST Clearing
A sales return of inventory will
Decrease Inventory and decrease Bank and GST Clearing
Decrease Inventory, decrease Accounts Receivable and decrease GST GST Clearing
Decrease Inventory, decrease Accounts Payable and decrease GST Clearing
Increase Inventory, decrease Accounts Receivable, decrease GST Clearing and decrease Owners Equity
Drawings of inventory will
Increase Owners equity and decrease assets
Decrease Bank and Owners Equity
Decrease Inventory and Increase Owners equity
Decrease Inventory and Decrease Owners equity
