Topic 17

Question 1

To how do you find out if cash is missing?

Answer 1

Prepare a cash account, the remaining balance is the amount needed to be put on the Credit side to make it balance (Narrative is Cash Stolen)

Question 2

What is Mark up?

Answer 2

This is the percentage that is added to the Cost of Sales to give the Selling price

Question 3

What is Margin?

Answer 3

The amount of profit made on Sales as a percentage

Question 4

How do you calculate missing inventories?

Answer 4

Missing inventories = what inventories should have been - Actual Inventory

Question 5

State the formula for Gross Profit Margin and it’s units

Answer 5

Gross Profit / Revenue X 100

Units = %

Question 6

State the formula of Rate of inventory turnover and units

Answer 6

Cost of Sales / Avg Inventory

Avg Inventory = Opening + closing / 2

Units: Times

Question 7

State the formula for profit in relation to revenue

Answer 7

Profit for the year / Revenue X 100

Units : %