**Question:**The Jones Company completed its inventory count and arrived at a total inventory value of $216,000. It included in its inventory goods held on consignment for Spring Company, costing $23,000. Is their total inventory value correct?- ○ True- ○ False**Explanation:**In accounting, goods held on consignment should not be included in the inventory count of the company holding the goods. These goods are still owned by the consignor (in this case, Spring Company), and hence should not be included in the inventory of the consignee (Jones Company). Therefore, Jones Company should deduct the $23,000 of consignment goods from the total inventory value.To determine if the reported inventory value is correct, subtract the consignment goods from the total:Total reported inventory value: $216,000 Consignment goods value: $23,000 Correct inventory value = $216,000 - $23,000 = $193,000Since the correct inventory value is $193,000 and not $216,000, the answer to the question is:- ○ False

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Description: **Question:**The Jones Company completed its inventory count and arrived at a total inventory value of $216,000. It included in its inventory goods held on consignment for Spring Company, costing $23,000. Is their total inventory value correct?- ○ T

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The Jones Company completed its inventory count and arrived at a total inventory value of $216,000. It included in its inventory goods held on consignment for Spring Company, costing $23,000. Is their total inventory value correct? O True O False

The Jones Company completed its inventory count and arrived at a total inventory value of $216,000. It included in its inventory goods held on consignment for Spring Company, costing $23,000. Is their total inventory value correct? O True O False

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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