Business BTEC Study Guide Exam Well Answered 100% 2024.
What is statement of comprehensive income?? - Answer It is a financial report which records sales revenue, expenses, how much profit and loss a business made Purpose and use of the statement of comprehensive income - Answer - accurate calculation of the profit and loss a business made - records sales, costs and profit over a period of time (usually a yr.) What are cost of sales? - Answer These are direct costs attributable to the production of the goods sold in a company Cost of sales - Answer opening inventory - closing inventory Expenses - Answer Not directly attributable to providing trade?? What is an opening inventory? - Answer Stocks, materials that a business possesses when starting a business year What is a closing inventory? - Answer Stocks, materials that a business has left at the end of the business year What is depreciation? - Answer An accountancy concept used to spread the costs of an asset over its usual life (some assets last for few yrs. and their value drops as these age, e.g. machinery, equipment, vehicles) Adjustments for depreciation - Answer - depreciation value is added to the statement of comprehensive income (in expenses) - important that a fixed rate is given a realistic value
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