Sales Tax Flashcards
S……… t…… is an indirect tax levied on the sale of goods and services.
Sales tax is an indirect tax levied on the sale of goods and services.
R……………… businesses charge ……………… sales tax on sales and suffer ……………… sales tax
on purchases.
Registered businesses charge output sales tax on sales and suffer input sales tax on purchases.
The c…… of g…… s…….is calculated as: Opening inventory + purchases – closing inventory.
The cost of goods sold is calculated as: Opening inventory + purchases – closing inventory.
Carriage ……………… is included in the cost of purchases. Carriage ……………… is a selling expense.
Carriage inwards is included in the cost of purchases. Carriage outwards is a selling expense.
The value of inventories is calculated at the l……… of c……… and n…… r………… v……..
The value of inventories is calculated at the lower of cost and net realisable value.
The cost of inventories can be arrived at by using ……………… or ………………
The cost of inventories can be arrived at by using FIFO (first in-first out) or AVCO (weighted average costing, both periodic weighted average and continuous weighted average).
C……….. expenditure is expenditure which forms part of the cost of non-current assets. R……………… expenditure is expenditure incurred for the purpose of the trade or to maintain non current assets.
Capital expenditure is expenditure which forms part of the cost of non-current assets. Revenue expenditure is expenditure incurred for the purpose of the trade or to maintain non current assets.
The …… of a non-current asset, less its estimated residual value, is allocated fairly between accounting periods by means of d………………..
The cost of a non-current asset, less its estimated residual value, is allocated fairly between accounting periods by means of depreciation.
D……………… costs must be capitalised as an i……………… asset if the criteria in IAS 38 are satisfied.
Development costs must be capitalised as an intangible asset if the criteria in IAS 38 are satisfied.
A……………… are expenses which relate to an accounting period but have not yet been paid for. They are shown in the statement of financial position as a l……………….
Accruals are expenses which relate to an accounting period but have not yet been paid for. They are shown in the statement of financial position as a liability.
P………………are expenses which have already been paid but relate to a future accounting period. They are shown in the statement of financial position as an ……………….
Prepayments are expenses which have already been paid but relate to a future accounting period. They are shown in the statement of financial position as an asset.
I……………… debts are specific debts owed to a business which it decides are never going to be paid. They are written off as an ……………… in the statement of profit or loss.
Irrecoverable debts are specific debts owed to a business which it decides are never going to be paid. They are written off as an expense in the statement of profit or loss.
An ……………… in the allowance for receivables is shown as an expense in the statement of profit or
loss.
An increase in the allowance for receivables is shown as an expense in the statement of profit or loss.
According to IAS 37, a provision should be recognised when:
According to IAS 37, a provision should be recognised when:
– An entity has a present obligation
– It is probable that a transfer of economic benefits will be required to settle it
– A reliable estimate can be made of its amount
According to IAS 37, a c……………… liability must not be recognised as a liability in the financial statements. Instead it should be d………….. in the notes to the financial statements.
According to IAS 37, a contingent liability must not be recognised as a liability in the financial statements. Instead it should be disclosed in the notes to the financial statements.
