Q1 Which of the following would be included in the operating budgets for an accounting firm?

Select one:

a. The sales or fees budget, the operating expenses budget and the capital expenditure budget.

b. The sales or fees budget and the budgeted statement of profit or loss.

c. The sales or fees budget and the cash budget.

d. The sales or fees budget, the labour budget, and the operating expenses budget.

Q5 For a retail entity, how is cost of sales calculated?

Select one:

a. Ending inventory + purchases - beginning inventory

b. Purchases - ending inventory - beginning inventory

c. Beginning inventory - purchases + ending inventory

d. Beginning inventory + purchases - ending inventory

Q6

Which of the following statements is correct regarding the use of the first-in first-out (FIFO) method of valuing inventory?

Select one:

a. Cost of sales for the period is calculated using weighted average cost of the goods acquired.

b. Closing inventory consists of the most recently purchased goods.

c. Closing inventory consists of goods purchased earlier in the period.

d. Cost of sales for the period is calculated using the most recent inventory cost per item.