İncomplete Records

Question 1

Net assets is

Answer 1

• Assets minus liabilities are often referred to as net assets. (LSBF)

LSBF. ACCA F3 Study Manual 2017/18. London School of Business and Finance, 20170501. VitalBook file.

Question 2

The accounting equation

Answer 2

If Assets – Liabilities = Capital, then

Closing net assets = Opening net assets + Capital injections + Profit – Drawings (LSBF)

LSBF. ACCA F3 Study Manual 2017/18. London School of Business and Finance, 20170501. VitalBook file.

Question 3

The cash book approach to incomplete records involves finding a balancing figure in a ledger account, using a cost structure, or both (LSBF)

LSBF. ACCA F3 Study Manual 2017/18. London School of Business and Finance, 20170501. VitalBook file.

Answer 3

As above

Question 4

Learn

Answer 4

Cost structures involve applying a mark-up or margin (LSBF)

LSBF. ACCA F3 Study Manual 2017/18. London School of Business and Finance, 20170501. VitalBook file.

Question 5

Mark up is

Answer 5

• Mark-up is a gross profit as a percentage of cost of sales. (LSBF)

LSBF. ACCA F3 Study Manual 2017/18. London School of Business and Finance, 20170501. VitalBook file.

Question 6

Margin is

Answer 6

• Margin is a gross profit as a percentage of sales. (LSBF)

LSBF. ACCA F3 Study Manual 2017/18. London School of Business and Finance, 20170501. VitalBook file.

Question 7

Mark up

Answer 7

E.g. 25%

Sales= 125%
Cost of sales= 100%
Profit= 25%

Question 8

20% margin

Answer 8

Sales = 100%
Cost of sales = 80%
Profit = 20%