Skills test (Stock and Asset Reg)

System

Frist skills test this friday (intermediate)
Can anyone help me in the following areas.

A short summary of Why? How? and When? a business carries out a stocktake.

Why does a business maintain fixed asset register

Any help Please

System

Re:Skills test (Stock and Asset Reg)

Stock takes are normally done at the end of the financial year. It is necessary to know how much stock is held as it affects the gross profit on the income statment. Sales less purchases and opening stock, plus closing stock = gross profit. Stock-taking also allows the company to calculate whether there have been any losses or thefts as this will also affect the profit. As an asset they also appear on the balance sheet. I guess they can also work out which lines are selling well and which not so well, but I work in the public sector so it's not something I do.

An asset register will gather together information on assets held, when purchased, cost value and depreciation charge, as well as net book value. Insurance companies will probably require this to be held. I also use mine to assist with the annual inventory of equipment held. As the above forms a substantial part of the balance statement it is a very useful way to keep the information together.

Just a few short notes, I'm sure someone will have a more comprehensive idea of why closing stock and asset registers are so important.

Jackie

System

Re:Skills test (Stock and Asset Reg)

Nope looks like a pretty comprehensive answer to me.

System

Re:Skills test (Stock and Asset Reg)

Hey

Can you let me know what topics come up for ECR as im sitting the deveolved next week. Esp the theory as im just learning the calculations.

Good luck

Thanks

Anjali