Test 4n Flashcards
Debtor and Creditor
Debtor Acc Rec
Creditor Acc Pay
What is Inventory Recording System?
Business can choose to record inventory transactions using either the perpetual inventory system or periodic inventory system.
What is Perpetual Inventory System?
Keeps exact record of number of items in inventory. Regarded as best. Stock takes regularly to check loss via spoilage and theft.
What is Periodic Inventory System?
It is the simpler system as it only updates the ending inventory balance in the general ledger when a physical inventory count is conducted.
Features of Perpetual Inventory System?
1)Keepps exact number of item
2)Chance of running out of inventory is slim
3)Profit+calc of sale can be calcuatled for every sale through comp program.
4)sTCOKTAKE FOR INVENTORY LOSS
Advantages of Perpetual Inventory System
1)Short term income statements can be prepared as cost of sales is known at all times.
2) Possibility of running out of inventory is reduced as owner knows number of stock.
3) Fast and slow moving inventory lines can be easily identified.
Disadvantages of Perpetual Inventory System?
More expensive to set up than the periodic inventory system
GST Free Supplies meaning +examples
they are not taxed. Most basic foods like read and milk, educational coruses, medical are exempt from GST
Taxable Supplies Requirements?
1For payment of some kind
2Made in the course of operating a business
3Connected with Australia
Input Taxed Supplies+EXAMPLE
Sales of goods and service that dont include GST in price. Most ommonly are fiancial supplies (such as lending money or provision of credit for a fee)
Requirements for Business to register for GST?
A business only has to register for GST if it has an annual turnover of over $75,000 or more ($150,000 or more for non-profit organisations).
What is ABN
Australian Business Number (ABN) is a number that businesses must use so that the Australian Tax Office (ATO) can identify them in all their dealings. A business must have an ABN to be able to register for the GST.
What are taxable supplies?
Taxable supplies are those goods and services that are subject to the GST.
Gst free supplies explained?
GST-free supplies are those that are not taxed. Most basic foods, some education courses and some medical, health and care products and services are exempt from GST.
What are Input taxed supplies
nput taxed supplies are sales of goods and services that don’t include GST in the price. The most common input taxed sales are financial supplies (such as lending money
