Below is an extract from an income statement. The cost of sales is: Select one: a. $16900 b. $21000 c. $19500 d. $17500. Question 2 Not complete Marked out of 0.5 Flag question The essence of the perpetual method of accounting for inventory is: Select one: a. it produces a higher gross profit than the periodic method. b. cost of sales is calculated at the end of the accounting period. c. a stocktake is performed. d. all movements in each item of stock are tracked via detailed inventory records. Question 3 Not complete Marked out of 0.5 Flag question Inventory is reported on the balance sheet as: Select one: a. an investment. b. a non-current asset. c. property, plant and equipment. d. a current asset. Ethical behaviour in business will be achieved if: Select one: a. None of the above is correct b. The strict letter of the law is applied c. Judgement is used, based on rules and morals d. A course in ethics is undertaken Question 5 Not complete Marked out of 0.5 P Flag question The office supplies inventory account is a/an: Select one: a. asset b. expense c. income d. liability Question 6 Not complete Marked out of 0.5 Flag question A regular withdrawal of cash by the owner from the business is treated as a reduction in equity and is recorded in an account called: Select one: a. Mortgage b. Creditors c. Debtors d. Drawings Southside Manufacturing is preparing its purchases budget for the 3rd quarter of the year. The following information is given in units. Beginning inventory 550 Ending inventory 780 Sales forecast for second quarter 1,390 How many units should be purchased in the second quarter? a. 1,390 b. 1,620 c. unable to calculate from information provided d. 1,160 Question 8 Not complete Marked out of 0.5 P Flag question If inventory costs are rising which method gives the highest profit? Select one: a. LIFO b. FIFO. c. Weighted average. d. It is not possible to calculate which method gives the highest profit. Question 9 Not complete Marked out of 0.5 Flag question Objectives of a conceptual framework include: Select one: a. All of the above b. Improved communication c. Providing a defence against lobby groups d. Fewer and more consistent Accounting Standards The recording of transactions in the ledger always involves: Select one: a. Plenty of work for accountants b. Same dollar amounts of debits and credits c. The original recording of the transaction d. Same number of debit and credit entries