Match each description with the correct term. Goods held for sale by one party although ownership of the goods is retained by another party. [ Choose ] [Choose ] Consigned goods Net realizable value Inventory system in which companies manufacture or purchase goo FOB (free on board) shipping point Dictates that a company use the same accounting principles FOB (free on board) destination and methods from year to year. Consistency concept Freight terms indicating that ownership of the goods [ Choose ] remains with the seller until the goods reach the buyer. Freight terms indicating that ownership of the goods passes to the buyer when the public [Choose ] carrier accepts the goods from the seller. Net amount that a company [ Choose ] expects to realize (receive) from the sale of inventory. Specifically, it is the estimated selling price in the normal course of business, less estimated costs to complete and sell. > >

Match each description with the correct term. Goods held for sale by one party although ownership of the goods is retained by another party. [ Choose ] [Choose ] Consigned goods Net realizable value Inventory system in which companies manufacture or purchase goo FOB (free on board) shipping point Dictates that a company use the same accounting principles FOB (free on board) destination and methods from year to year. Consistency concept Freight terms indicating that ownership of the goods [ Choose ] remains with the seller until the goods reach the buyer. Freight terms indicating that ownership of the goods passes to the buyer when the public [Choose ] carrier accepts the goods from the seller. Net amount that a company [ Choose ] expects to realize (receive) from the sale of inventory. Specifically, it is the estimated selling price in the normal course of business, less estimated costs to complete and sell. > >

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Description: **Matching Descriptions with Accounting Terms**1. **Goods held for sale by one party although ownership of the goods is retained by another party.** - Options: Consigned goods, Net realizable value, Inventory system, FOB (free on board) shipping p

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 3DQ: Using the perpetual inventory system, what account is debited when a business finds that its...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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**Matching Descriptions with Accounting Terms**

1. **Goods held for sale by one party although ownership of the goods is retained by another party.**
- Options: Consigned goods, Net realizable value, Inventory system, FOB (free on board) shipping point, FOB (free on board) destination, Consistency concept.

2. **Dictates that a company use the same accounting principles and methods from year to year.**
- Options: Consigned goods, Net realizable value, Inventory system, FOB (free on board) shipping point, FOB (free on board) destination, Consistency concept.

3. **Freight terms indicating that ownership of the goods remains with the seller until the goods reach the buyer.**
- Options: Consigned goods, Net realizable value, Inventory system, FOB (free on board) shipping point, FOB (free on board) destination, Consistency concept.

4. **Freight terms indicating that ownership of the goods passes to the buyer when the public carrier accepts the goods from the seller.**
- Options: Consigned goods, Net realizable value, Inventory system, FOB (free on board) shipping point, FOB (free on board) destination, Consistency concept.

5. **Net amount that a company expects to realize (receive) from the sale of inventory. Specifically, it is the estimated selling price in the normal course of business, less estimated costs to complete and sell.**
- Options: Consigned goods, Net realizable value, Inventory system, FOB (free on board) shipping point, FOB (free on board) destination, Consistency concept.

**Dropdown Menu Options:**
- Consigned goods
- Net realizable value
- Inventory system in which companies manufacture or purchase goods only when needed for use.
- FOB (free on board) shipping point
- FOB (free on board) destination
- Consistency concept

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