Inventory Systems is one of 9 topics in the Grade 11 Accounting CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Under the perpetual stock system, the Trading Stock account is:
Continuously updated with every purchase and every sale as it happens
Only updated once a year at year end
Never used at all
Only updated when goods are purchased, not when sold
Answer: Continuously updated with every purchase and every sale as it happens — The perpetual system keeps a continuously updated Trading Stock account, reflecting inventory on hand at any given moment without needing a physical count.
Easy
2. Under the perpetual system, when a sale is made, how many entries relating to that sale are typically recorded?
Two: one for the sale at selling price, and one transferring cost price from Trading Stock to Cost of Sales
Only one, recording the sale at selling price
Only one, recording the cost price
Three, including a separate VAT entry only
Answer: Two: one for the sale at selling price, and one transferring cost price from Trading Stock to Cost of Sales — The perpetual system records the sale itself, and simultaneously transfers the cost price of the goods sold from Trading Stock into Cost of Sales, applying the matching principle.
Medium
3. A business using the perpetual system had Sales of R335 000 for the year, and total cost-of-sales transfers recorded from Trading Stock of R235 000. Calculate the gross profit, in rand.
