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6. What is the formula for cost of sales?
- Purchases x closing inventory
- Opening inventory + purchases - closing inventory
- Opening inventory - closing inventory
- Closing inventory / opening inventory
7. How do you know if VAT is reclaimable from HMRC?
- Tax x box 6
- Input VAT < output VAT
- Output VAT > tax
- Box 6 > box 1 x box 5
8. What is the formula for net assets?
- Net current assets + expenses = net assets
- Liabilities x assets = net assets
- Non current assets + net current assets - non current liabilities = net assets
- Net assets / liabilities = net assets
9. How do you know if you have a loss on disposal?
- Proceeds < net book value
- Input VAT > output VAT
- Proceeds < depreciation
- Net book value x expenses
10. What is the formula for straight line depreciation?
- Depreciation - cost
- Reducing balance x 25%
- Cost - residual value / useful economic life
- Net book value x useful economic life / cost
11. What is the formula for net worth?
- Expenses - profit + liabilities = net worth
- Equity + profit = net worth
- Equity + expenses = net worth
- Depreciation expenses - profit = net worth
12. What is the formula for net book value?
- Expenses x net book value - depreciation
- Cost - depreciation charged to date
- Depreciation - cost
- Income x expenses