Goods on consignment:a. Are goods shipped by the owner to the consignee who sells thegoods for the owner.b. Are reported in the consignee's books as inventory.c. Are goods shipped to the consignor who sells the goods for theowner.d. Are not reported in the consignor's inventory since they do not havepossession of the inventory.e. Are always paid for by the consignee when they take possession ofthe goods.

The correct answer is:a. Are goods shipped by the owner to the consignee who sells the goods for the…

Answered: Goods on consignment: a. Are goods…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 18MC: Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases...

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Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.
Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.
Consignment goods are: Multiple Choice Goods shipped by the owner to the consignee who sells the goods for the owner. Reported in the consignee's books as inventory. Goods shipped to the consignor who sells the goods for the owner. Not reported in the consignor's inventory since they do not have possession of the inventory. Always paid for by the consignee when they take possession.
How should a consignee record goods hold on consignment? A. The goods should be included in the ending inventory of the consignee as soon as they are transferred from the consignor to the consignee. B. The goods should be included in the cost of goods sold by the consignee only once sold. C. The goods should not be recorded as inventory or cost of goods sold by the consignee at any point during the consignment arrangement. D. The goods should be included in the cost of goods sold by the consignee as soon as they are transferred from the consignor to the consignee.
What is a consigned inventory? Goods that are shipped and title transfer to the consignee. Goods that are sold but payments is not required until the goods are sold. Goods that are shipped but title remains with the consignor. Goods that have been segregated for shipment to a customer.
A receiving report is filled out when we receive: An inventory shipment from a vendor. Items that a customer is authorized to return from a previous sale. A payment on a customer's account. a and b only. Answer is not the First option!
1. Which of the following accounts is not included in inventory? a. Raw material b. Team c. Finished goods d. Materials 2. Why is inventory included in the net income determination? a. To determine the cost of goods sold b. To determine sales income c. To determine the return of merchandise d. Inventory is not included in the determination of net income 3. Which of the following is a feature of the perpetual inventory system? a. Inventory purchases are debited to the Purchasing account. b. Inventory records are not kept for every item. c. The cost of what is sold is recorded in each sale. d. The cost of goods sold is determined as the quantity of purchases minus the change in inventory.
When a proprietor takes goods for own use, we will record it as: a. Debit drawings account : Credit Purchases account b. Debit purchases account; credit drawings account c. Debit drawings account; credit Sales account d. Debit sales account : Cedit Inventory account
ces For each transaction of Sealy Company, (a) determine whether or not Sealy owns the goods during transit. (b) If Sealy is responsible for transportation costs, record the entry for shipping costs assuming they are paid in cash and the perpetual inventory system is used. Complete this question by entering your answers in the tabs below. Required A Required B Determine whether or not Sealy owns the goods during transit. Transaction 1. Purchased goods FOB shipping point. Transportation costs are $730. 2. Sold goods FOB destination. Transportation costs are $330. 3. Sold goods FOB shipping point. Transportation costs are $480. 4. Purchased goods FOB destination Transportation costs are $190. Sealy has Ownership? Required B >
Which of the following items should not be included in the cost of inventory? Select one: O a. The initial purchase price of inventory O b. Freight out cost to deliver inventory to a customer c. Insurance cost paid to purchase the inventory d. Delivery cost paid to purchase the inventory
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Which of the following is incorrect about the perpetual inventory method? a. purchases are recorded as debit to inventory accountb. the entry to record a sale includes a debit to cost of goods sold and a credit to inventoryc. after a physical inventory count, inventory is credited for any missing inventory.d. purchase returns are recorded by debiting accounts payable and crediting purchase returns and allowances

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