ACCT2112 Lecture Notes - Lecture 4: Perpetual Inventory, Trial Balance, Financial Statement
Document Summary
Inventory: goods/property purchased and held for sale, other assets held for future sale but not normally sold as part of regular business activities, e. g. Retail business operations: major objective: determination of profit, key: calculation of cost of sales, e. g. Largest expense: the inventory asset is likely to be very active. Condensed income statement for retailer: sales (a revenue) is most important, cost of sales represent inventory sold during the period, group expense by function, selling and distribution expenses, administrative expenses, finance expenses. Sales cost of sales = gross profit (gross margin) Retailing and goods/services tax: retail business register for australian business number (abn) if gross taxable supplies (sales of goods) exceed /year, must also register gst, must issue tax invoices, can claim input credits. Tax invoice: required for all sales more than , all tax invoices must have, tax invoice" stated prominently, abm of entity issuing, date of issue, name of suppliers, description of items being supplied.
