Which statement relating to the moving average method of costing inventories, used with the perpetual inventory system, is correct? A new average cost is calculated after each sale. A new average cost is calculated at the end of each month. A new average cost is calculated after each purchase. A new average cost is calculated after each sale and each purchase. All of the above. QUESTION 6 Equipment which had a cost of $30 000 and a carrying amount of $18 000 on 30 June 2019, was disposed of on 1 October 2019. Depreciation was calculated on the equipment at 20% per annum using the diminishing-balance method. What was the depreciation expense charged for the financial year 2019/20, before the asset was sold? $1500 $1800 $0 $3600 $900 QUESTION 7 Windbreaker Limited has a current ratio of 2.5:1. Which of the following actions will decrease this ratio? Sale of a machine for cash Issue of long-term debentures Collection of an account receivable Declaration of a dividend None of the above QUESTION 8 Buyer Co has ordered goods on credit from Seller Co. Before Seller ships the goods, it would like to be sure that Buyer will be able to pay within the normal credit period. Assuming Seller has access to Buyer's financial statements, which of the following ratios will be of the most interest to Seller Co.? Current ratio Debt ratio Price earnings ratio Dividend yield ratio None of the above