Inventories, Accruals & Prepayments Flashcards
1
Q
Cost of Sales
A
Opening inventory + purchases + carriage inwards - closing inventory
2
Q
Net Realisable Value
A
Revenue expected to be earned in the future less any selling/modification costs.
3
Q
Valuation of inventory
A
FIFO, LIFO, AVCO, Standard cost, and Replacement cost.
4
Q
Accruals
A
Expenses incurred but not yet paid for
5
Q
Prepayment
A
Expenses paid for in advance
6
Q
Accrued Income
A
Income earned but not yet received
7
Q
Deferred income
A
Income received in advance
