- Taking a physical count of inventory
| a. | is not necessary when a perpetual inventory system is used | |
| b. | is not necessary when a periodic inventory system is used | |
| c. | has no internal control relevance | |
| d. | should be done near year-end |
Answer = d
- Kristin’s Boutiques has identified the following items for possible inclusion in its December 31 inventory. Which of the following would notbe included in the year-end inventory?
| a. | Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin’s Boutique as of December 31. | |
| b. | Kristin has sent merchandise to various retailers on a consignment basis. | |
| c. | Kristin has merchandise on hand which has been returned by customers because of wrong size. | |
| d. | Kristin has in its warehouse merchandise on consignment from Abby Co. |
Answer = d
- The two most widely used methods for determining the cost of inventory are
| a. | FIFO and LIFO | |
| b. | gross profit and average cost | |
| c. | FIFO and average cost | |
| d. | LIFO and average cost |
Answer = a
No comments:
Post a Comment