3. Which statement relating to inventory is not correct?

1. It is a very active asset, continually being acquired, sold and replaced.
2. It is classified as a non-current asset in the balance sheet.
3. Another name for inventory is stock-in-trade.
4. It makes up a significant portion of a retailer's assets

The identity or The ABN of the Purchaser need be clear

1. for tax invoices of $1000 or more
2. for tax invoices of $1000 or less
3. for tax invoices of $82.50 or more including GST
4. for tax invoices of $82.50 or more excluding GST

Accounts for Minion Ltd are as follows:

Cash 19,000

Accounts payable 15,000

Wages payable 2,000

Inventory 8,500

Accounts receivable 4,200

Equipment 14,500

Loan payable 15,000

Motor vehicles 22,000

The amount for Equity is:

1. $32 200
2. $57 200
3. $27 000
4. $36 200

10. A business purchased inventory for $15 000, paying $8 000 cash and the balance of $7 000 due at the end of the following month. The debit and credit entries are:

1. debit cash $8 000, debit accounts payable $7 000; credit inventory $15 000.
2. debit inventory $8 0000; credit cash $8 000.
3. debit inventory $15 000; credit cash $8 000, credit accounts payable $7 000.
4. debit inventory $8 000; credit cash $15 000, credit accounts payable $7 000.

1. The business completes a purchase order for the purchase of more inventory at a cost of $1500. The immediate effect on the accounting equation is to:

1. increase asset inventory by $1500 and decrease the asset cash by $1500.
2. decrease the asset cash by $1500 and increase expenses by $1500.
3. increase liabilities by $1500 and increase asset inventory by $1500.
4. no effect as this is not recognised as a business transaction until the inventory is received

2. If you are creating an item in XERO which you mark "I purchase this item", which account from the following should be linked with it

1. Inventory
2. Cost of Goods Sold
3. Purchase
4. Sales