5. A café that sells smoothies often has fruit that becomes rotten and the employees have to throwit away. What type of system does the café use to count inventory?Oagricultural inventory systemOperiodic inventory systemperpetual inventory systemcontinuous inventory system

The continuous Inventory system records inventory balances after every transaction that takes place…

Answered: A café that sells smoothies often has…

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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Need Help on the following question. Question #1 You have been hired by the CEO of a soon-to-be-opened bookstore to develop procedures to help control inventory. List, describe, and defend four procedures you recommend be implemented to control inventory. As part of your response, be sure to describe any potential costs associated with these procedures.
Explain inventory overstatement. A merchandising company has asked you to advise it on how to detect fraudulent financial reporting. Management wants your help in detecting inventory overstatement. Further, management wants to know how to find evidence of inventory overstatement. Using your own numbers, make up an example to show management the effect of overstating inventory. Show how inventory overstatement at the end of Year 1 carries through to the beginning inventory overstatement in Year 2. Prepare a brief report to management suggesting ways management could detect inventory overstatement.
A retailer acquires new computers for use in the business operations. When recording this transaction, and assuming a perpertual inventory system is used, the journal entry will include a account. O credit to Equipment O debit to Merchandise Inventory credit to Merchandise Inventory O debit to Equipment
Select all that apply Determine which of the following statements are correct regarding the difference between physical flow and the cost flow of inventory Check all that apply) A business may adopt any cost flow assumption when accounting for perishable sems Perishable-items Usually have an actual physical flow of FIFO Penshable items neve an actual physical flow of LIFO Cost flow in an assumption about which goods/items are sold Physical flow refers to the actual movement of goods
Suppose you are being interviewed for a bookkeeping job for a retailer that uses a perpetual inventory system. The employer feels that the only way to determine whether or not the person being interviewed actually understands how to record transactions, is to ask them to provide an example showing the accounts (no amounts necessary) that would be debited and credited for the following: Purchase merchandise inventory on account. Sale of goods on account Return of part of the merchandise purchased in 1. above to the supplier. Payment to supplier, taking advantage of the discount that was offered. Return of goods by customer for credit. Payment received from customer, taking advantage of discount that was offered.
6. Discuss the inventory policies of Nordstrom to that of other department or retail stores. Does this policy impact customer service?
What is the name of the account used to record sales of merchandise inventory? Multiple Choice Sales Returns and Allowances Sales Fees Income Accounts Receivable
Inventory is a vital part of most businesses. Proper controls should be in place for the safety and reporting of inventory. Inventory errors can cause many problems for business. Part 1: Inventory Answer the following: Provide the name of a business and example inventory for that business. List one or more examples of ways to safeguard inventory. List each of the cost methods and briefly explain. How do you calculate inventory turnover? How is inventory turnover used?
A retailer using a perpetual inventory system will make a. the same number of adjusting entries as a service firm does. b. one more adjusting entry than a service firm does. c. one less adjusting entry than a service firm does. d. different types of adjusting entries compared to a service firm.
Which of the following is not a step in the retail inventory method process? a.Compute the cost of goods available for sale. b.Compute the ending inventory at retail by subtracting sales at retail from goods available for sale at retail. c.Estimate the cost of the ending inventory by multiplying the ending inventory at retail by the cost-to-retail ratio. d.Compute the cost-to-retail ratio.
The revenue account for a merchandising business is typically called ___________. Group of answer choices inventory sales. unearned revenue. fees earned. sales or sales of merchandise.
For each statement below, identify whether the statement applies to the periodic inventory system, the perpetual inventory system, or both. Periodic inventory system, Perpetual inventory system, or Both? a. Normally used for relatively inexpensive goods. b. Keeps a running computerized record of merchandise inventory. c. Achieves better control over merchandise inventory. d. Requires a physical count of inventory to determine the quantities on hand. e. Uses bar codes to keep up-to-the-minute records of inventory.

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A café that sells smoothies often has fruit that becomes rotten and the employees have to throw away. What type of system does the café use to count inventory? Oagricultural inventory system Operiodic inventory system Operpetual inventory system Ocontinuous inventory system