Inventory Systems (Grade 11 NSC Matric Accounting): Flashcards
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Trading stock alternative name
Trading stock alternative name
Inventory
Two main inventory systems
Two main inventory systems
Perpetual stock system and periodic stock system
Perpetual system record frequency
Perpetual system record frequency
Continuous, up-to-date records throughout the year
Periodic: Trading stock account during year?
Periodic: Trading stock account during year?
No Trading stock account is used
Cost of sales formula (periodic system)
Cost of sales formula (periodic system)
Opening Stock + Purchases - Closing Stock = Cost of Sales
Which system can detect stock deficits?
Which system can detect stock deficits?
Perpetual stock system
Perpetual: when is cost of sales recorded?
Perpetual: when is cost of sales recorded?
As each transaction takes place
Physical stock take requirement for both systems
Physical stock take requirement for both systems
Required at end of financial year
Perpetual: account maintained throughout year
Perpetual: account maintained throughout year
Trading stock account
Periodic: purchases recorded in which account?
Periodic: purchases recorded in which account?
Purchases account (not Trading stock)