Required: An auditor is trying to figure out if the inventory at an electronics store is obsolete. From the list below, identify whether each attribute would be useful for predicting inventory obsolescence or not. Predictive Attributes Inventory location Purchase date Manufacturer Identified as obsolete Sales revenue Inventory color Inventory cost Inventory description Inventory size Inventory type Days since last purchase Predictive?

Required: An auditor is trying to figure out if the inventory at an electronics store is obsolete. From the list below, identify whether each attribute would be useful for predicting inventory obsolescence or not. Predictive Attributes Inventory location Purchase date Manufacturer Identified as obsolete Sales revenue Inventory color Inventory cost Inventory description Inventory size Inventory type Days since last purchase Predictive?

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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- List and explain the substantive tests of Inventory and give example.
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.
Please answer fast and correct in detail
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?
eBook Question Content Area Challenge Problem Bhushan Company has been using LIFO for inventory purposes because it would prefer to keep gross profits low for tax purposes. In its second year of operation (20-2), the controller pointed out that this strategy did not appear to work and suggested that FIFO cost of goods sold would have been higher than LIFO cost of goods sold for 20-2. Is this possible? 20 - 1 Units Cost/Unit Purchase 1 100 $1.00 Purchase 2 200 2.00 Purchase 3 300 3.00 Ending inventory 200 20-2 Units Cost/Unit Beginning inventory 200 Purchase 4 150 $4.00 Purchase 5 250 5.00 Purchase 6 350 6.00 Ending inventory 50 Required: Question Content Area Using the information provided, complete the various charts below and compute the cost of goods sold for 20 - 1 and 20-2 comparing the LIFO and FIFO methods. If units are in inventory at two different costs, enter the OLDEST units first.Check My Work determine units sold and the cost of goods sold under each method.
An increasing inventory turnover ratioa. Indicates a longer time span between the ordering andreceiving of inventory.b. Indicates a shorter time span between the ordering andreceiving of inventory.c. Indicates a shorter time span between the purchase andsale of inventory.d. Indicates a longer time span between the purchase andsale of inventory.
S1: When you post an inventory transfer from warehouse 02 to warehouse 01, the system creates an inventory transfer document and a journal entry. S2: Missing inventories due to warehouse theft increases the stock quantities Only S1 is incorrect Both statements are incorrect Only S1 is correct Both statements are correct
Sales/Inventory Cutoff. Your client took a complete physical inventory count under your observation as of December 15 and adjusted the inventory control account (perpetual inventory method) to agree with the physical inventory. After considering the count adjustments as of December 15 and after reviewing the transactions recorded from December 16 to December 31, you are almost ready to accept the inventory balance as fairly stated. However, your review of the sales cutoff as of December 15 and December 31 disclosed the following items not previously considered: Required:What adjusting journal entries, if any, would you make for each of these items? Explain why each adjustment is necessary
How do retail companies correctly match expenses with revenue for the period to get an accurate net income? a. With a modern POS system. b. With the consistency principle. c. With a goods-on-hand estimate from the Controller. d. With a physical inventory. According to the Home Depot’s financial statement example provided by the author, which is the predominant method of inventory valuation used by the company? a. FIFO b. LIFO c. NRV d. LCM please provide me a coerrect answer explains tep by step
A retail business like Best Buy experiences some loss of inventory due to shoplifting, employee theft, or errors. The difference between the physical inventory count at the end of the accounting period and the balance of Merchandise Inventory in the accounting records is called ___________. Group of answer choices inventory reduction. inventory theft. inventory loss. inventory shrinkage or inventory shortage.