Notesale: Turn your study into money

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Extracts from the notes are below, to see the PDF you'll receive please use the links above

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Cost of sales are calculated as follows:
Opening inventory
x
Purchases
x
Less: returns outwards (x)
Add: carriage inwards x
Less: Closing inventory (x)
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Goodwill is an intangible current asset
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The external auditors give their opinion on the reliability of the published financial
statements
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Valuation of inventory in the financial statements must be recorded at the LOWER of cost
and net realisable value
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If the value of closing inventory is increased the outcome will be to increase profit and
increase the value of current assets
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Customer’s personal account will be recorded in Receivables ledger
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Tangible asset are subject to depreciation with the exception of land
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Depreciable amount of an asset = Cost of the asset – residual value
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Balance sheet is made up of Assets, Liabilities and Equity



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