4. One of the primary objectives of inventory controls is: Select one: A. Safeguarding inventory from damage or theft. B. Selling inventory at an affordable price C. Both A & B D. None of the above   5. When merchandise is shipped FOB (free on board) Destination: Select one: A. The buyer pays for the shipment. B. Title passes to buyer when merchandise is delivered. C. Title passes to buyer when merchandise is shipped. D. There is no charge for the shipment.   6. Which of the following statement is true regarding inventory costing? Select one: A. Under LIFO, the first units purchased are sold and ending inventory is made up of the most recent purchase B. The cost of ending inventory is the same Under the LIFO and FIFO methods. C. Both statements are true D. None of the above statements are true

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. One of the primary objectives of inventory controls is:

Select one:
A. Safeguarding inventory from damage or theft.
B. Selling inventory at an affordable price
C. Both A & B
D. None of the above
 

5. When merchandise is shipped FOB (free on board) Destination:

Select one:
A. The buyer pays for the shipment.
B. Title passes to buyer when merchandise is delivered.
C. Title passes to buyer when merchandise is shipped.
D. There is no charge for the shipment.
 

6. Which of the following statement is true regarding inventory costing?

Select one:
A. Under LIFO, the first units purchased are sold and ending inventory is made up of the most recent purchase
B. The cost of ending inventory is the same Under the LIFO and FIFO methods.
C. Both statements are true
D. None of the above statements are true
 
 
 
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