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Flashcards in Incomplete Records Deck (6):
1

Comparison of Capital (Net asset method) Advantages

Quick and easy
Provides quick answer for the Profit/Loss for year.

2

Comparison of Capital (Net asset method) Disadvantages

Provides no evidence for the profit/loss figure.

3

Statement of Affairs

List of assets and liabilities.

Assets
(Liabilities)
= Capital

4

Mark Ups

Expresses profit as a percentage of Cost Of Sales.

Mark up % = (Profit/Cost) X 100

5

Margin

Expresses profit as a percentage of Revenue.

Margin % = (Profit/Selling Price) X 100

6

Stolen / Damaged Inventory

Stolen inventory = Opening Inv + Purchases - Cost of Sales - Residual Inventory.

Stolen Inventory goes in the Income Statement as an Overhead.