Which of the following should be included in the physical inventory of a company? A) Both goods in transit to and from another company shipped FOB shipping point. B) Goods held on consignment from another company. C) Goods in transit from another company shipped FOB shipping point. D) Goods in transit to another company shipped FOB shipping point.

Q: Which type of company would report merchandise inventory as a line item on their balance sheet?…

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: True or False Merchandise inventory is reported in the long-term assets section of the statement of…

A: Long-term assets:                            Long-term assets are those assets called noncurrent…

Q: Which of the following is not a name for a specific type ofinventory?a. Finished goods. c. Raw…

A:

Q: In a periodic inventory system, the cost of merchandise purchased includes the cost of

A: Statement is TRUE  In a periodic inventory system, the cost of merchandise purchased includes the…

Q: True or False Merchandise inventory consists of products that a company acquires to resell to…

A: Merchandise inventory refers to inventory held by the company.

Q: The factor which determines whether or not goods should be included in a physical count of inventory…

A: The inventory is an asset for the business. The inventory is reported as a current asset in the…

Q: Which of the following statements regarding freight costs is true? Oa. FOB destination means that…

A: The inventory is recorded as current assets in the balance sheet . The inventory is recorded…

Q: At what amount will the inventory and cost of goods sold amounts be reported on the financial…

A: As per the accounting standards, the closing inventory must be reported at lower of cost or net…

Q: Which of the following statements best explains the relationship between the acquisition/payment…

A: Solution Explanation - Sales collection process is a series of operating events that collectively…

Q: If the sale includes the seller paying the freight costs and assuming the responsibility for…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: What is a consigned inventory? Goods that are shipped and title transfer to the consignee. Goods…

A: Consigned inventory refers to items that are held and sold on behalf of another company. Consigned…

Q: The following accounts are included in the ledger of David Company: Advertising expense Freight-in…

A: Cost of goods sold = Beginning inventory + Net purchases + Direct expenses - Ending inventory

Q: Which of the following expenditure cycle tasksshould not be separated?a. Purchasing inventory items…

A: Human intervention is required for certain tasks.

Q: Is it necessary to do a physical count of inventory if the company is using a perpetual system?  Why…

A: The perpetual inventory system is one of the approaches or systems used in inventory management…

Q: When using a periodic inventory system and the purchaser directly incurs the freight costs, which…

A: A periodic inventory system updates the inventory data on a regular basis, usually at the conclusion…

Q: Which of the following should be included in the ending inventory of a company? Goods held on…

A: FOB(Free on board) shipping vs FOB destination, in the case of FOB shipping the title of ownership…

Q: For a merchandiser, the term "inventory" refers to O A. raw materials that are used for production O…

A: A. Raw materials utilized in production: Usually handled by the supply chain team or by the…

Q: Who bears the freight when the terms of sale are (a) FOB shipping point, (b) FOB destination?

A: (a)If the sale is made with the terms FOB shipping point, the goods' ownership is transferred at the…

Q: Which of the following types of companies may be the least likely to carry inventory on its balance…

A: Inventory:- A company that owns raw materials, work in progress, and finished goods that are…

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.