alleryStart learning →Is value added tax generally part of cost of goods sold if it is recoverable?
AYes, in every case
BYes, if above 10%
CNo, generally excluded
DOnly for exporters
Answer & Solution
Correct answer: C. No, generally excluded
Recoverable input tax is not a cost to the business, so it is generally excluded from cost of goods sold.
Keep practising Accounts from Incomplete Records
Browse all Accounts from Incomplete Records questions for CA Foundation, or explore more Accounting topics.
Related questions
Which method suits goods that are indistinguishable from each other?Which method of identifying cost assumes the oldest purchases are sold first?Debtors 50,000 opening; credit sales 3,00,000; cash 2,70,000; discount 10,000; bad debts 5Cash receipts were Rs 2,00,000, of which Rs 1,20,000 came from debtors. Cash sales were whCash opened at Rs 10,000 and closed at Rs 18,000 after payments of Rs 1,52,000. Total receOpening cash Rs 12,000, receipts Rs 1,48,000, payments Rs 1,35,000. What is the closing caCreditors opened at Rs 50,000, credit purchases Rs 2,00,000, payments Rs 1,70,000. ClosingDebtors opened at Rs 20,000. Credit sales were Rs 1,00,000, returns Rs 5,000, cash receive