Back to quiz

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