preparation of financial statements Flashcards
1
Q
trading business: statement of financial performance
A
sales revenue
less: sales returns
net sales revenue
less: cost of sales
gross profit/loss
2
Q
discount received
A
income
3
Q
gain on sale of NCA
A
income
4
Q
discount allowed
A
expense
5
Q
loss on sale of NCA
A
expense
6
Q
impairment loss on TR (increase in allowance)/reversal of impairment loss on TR (decrease in allowance)
A
expense (xx) and xx
7
Q
impairment loss on inventory
A
expense
8
Q
depreciation of office equipment/motor vehicle
A
expense
9
Q
service business
A
service fee revenue
10
Q
for gain or loss on NCA
A
either one if there is NCA being sold
11
Q
A
