Question

accounting question

Calculate purchases for 2011: • Inventory 31/12/2010 $32 500 • Inventory 31/12/2011 34 000 • Cost of sales during 2011 $128 000 Select one: a. $126 500 b. $123 500 C. $129 500 d. $132 500 1. Expenses resulting from the marketing and sale of inventory including, advertising, salesperson's salaries, sales commissions and delivery expenses can be classified as expenses in the income statement of a retailer. please note there are two words in this answer 2. In Australia, where most accounting is computerised, the use of the periodic inventory system is declining. Which of the following businesses is still most likely to use the periodic approach to accounting for inventory? Select one: a. Chemist shop b. Supermarket C. Fruit and vegetable shop d. Service station 3. The main difference between a service and a retail business is that service businesses: Select one: a. Sell directly to consumers b. Buy and sell in bulk C. Convert raw materials into finished goods d. Sell services rather than goods 4. Expenses resulting from the marketing and sale of inventory including, advertising, salesperson's salaries, sales commissions and delivery expenses can be classified as expenses in the income statement of a retailer. please note there are two words in this answer 5.

Answer 1

1.cost of sales=opening stock +purchase _closing stock. Purchase =cost of sale +closing stock _opening stock. Purchase =128000+34000_32500=129500. Answer. C. 129500. 2 selling and distribution epenses. Experience resulting from marketing and selling of products and services and delivering products to customers are called selling and distribution expenses. 3. C. Fruit and vegetables shop. The periodic inventory system is suitable for small business to maintain minimum amount of inventory. 4.d.sells services rather than goods. A service business is a one which provide service to customers rather than goods 5.selling and distribution expenses