Inventory Systems (Grade 12 NSC Matric Accounting): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
At what price must trading stock always be recorded in accounting books?
At what price must trading stock always be recorded in accounting books?
Cost price
In the perpetual system, what type of account is trading stock classified as?
In the perpetual system, what type of account is trading stock classified as?
Asset account
What entry is made to trading stock when goods are purchased under the perpetual system?
What entry is made to trading stock when goods are purchased under the perpetual system?
Debit entry
When is cost of sales calculated in the perpetual inventory system?
When is cost of sales calculated in the perpetual inventory system?
After each sale
What is the key advantage of the perpetual inventory system?
What is the key advantage of the perpetual inventory system?
Superior internal control
In the periodic system, where are stock purchases recorded?
In the periodic system, where are stock purchases recorded?
Purchases expense account
Opening stock R4,000, Purchases R12,000, Carriage R400, Closing stock R2,500. What is cost of sales?
Opening stock R4,000, Purchases R12,000, Carriage R400, Closing stock R2,500. What is cost of sales?
R13,900
Under the periodic system, where is carriage on purchases recorded?
Under the periodic system, where is carriage on purchases recorded?
Separate expense account
Which system provides better internal control over inventory?
Which system provides better internal control over inventory?
Perpetual system
When is the periodic inventory system most suitable?
When is the periodic inventory system most suitable?
Low-value items, high volume