Inventory valuation and bank reconciliation quiz: N(A)-Level Principles of Accounts (SEAB 7086) quiz

At the lower of cost and net realisable value

Always at cost

Always at selling price

At the higher of cost and selling price

The original cost of the goods

The expected selling price less costs to sell

The selling price plus a profit margin

The amount paid to the supplier

The matching concept

The going concern concept

The prudence concept

The consistency concept

$800$

$1{,}400$

$700$

$600$

Because it reduces cost of sales, raising gross profit

Because it increases sales

Because it increases drawings

Because it lowers expenses directly

The debit side

The credit side

Both sides

Neither side

The credit side

It is not entered

The debit side

Both sides

A cheque the business has received but not banked

A cheque written by the bank

A cheque that has bounced

A cheque the business has written but the bank has not yet paid

Add unpresented cheques and subtract uncredited deposits

Subtract unpresented cheques and add uncredited deposits

Add both

Subtract both

$4{,}600$

$5{,}400$

$6{,}000$

$4{,}000$

To record extra income

To increase the bank balance

To reverse the receipt originally recorded, since the money was not received

Because it is a new payment to a supplier

Yes, they must be corrected in the ledger

No, they should be ignored completely

Yes, they mean fraud has occurred

No, they are timing differences that clear once the bank catches up