This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
You're on a roll — here are the answers to the multiple-choice questions: QUESTION 1 The formula for Cost of Goods Sold (COGS) in a merchandising business is: Opening Stock + Purchases - Closing Stock. Wages are generally considered an operating expense, though direct labor wages can be part of COGS in a manufacturing setting. Goods and Services Tax (GST) is a consumption tax that is typically added to the selling price or recovered as input tax, and is not directly included in the calculation of COGS for a business that can claim input tax credits. Therefore, GST is the item least likely to be used to decide the cost of goods sold. The correct option is D. Goods and Services Tax (GST). QUESTION 2 A cashbook is a financial record maintained by a business owner to record all cash and bank transactions, including payments made by cheque. The correct option is A. cashbook. QUESTION 3 On a bank statement, the bank records deposits (money paid into the account) as a credit to the customer's account. This increases the customer's balance. The correct option is A. amounts paid into the account. QUESTION 4 Banks issue bank statements to account holders so that they can compare the bank's records with their own financial records (like the cashbook). This process is known as bank reconciliation, which helps identify and resolve any discrepancies. The correct option is D. reconcile their accounts. Send me the next one 📸