Accounting Multiple Choice question : please Select the most correct answer?

1. The factor which determines whether or not goods should be included in a physical count of inventory is a. physical possession. b. legal title. c. management's judgement. d. whether or not the purchase price has been paid. 2. If goods in transit are shipped FOB shipping point by a carrier named by the buyer a. the seller has legal title to the goods until they are delivered. b. the buyer has legal title to the goods when a public carrier accepts the goods from the seller. c. the transportation company has legal title to the goods while the goods are in transit. d. no one has legal title to the goods until they are delivered. 3. If goods in transit are shipped FOB destination a. the seller has legal title to the goods until they are delivered. b. the buyer has legal title to the goods when a public carrier accepts the goods from the seller. c. the transportation company has legal title to the goods while the goods are in transit. d. no one has legal title to the goods until they are delivered. 4. Per its January 31, 2009 physical inventory count, Yager Company has $49,000 in inventory on hand at year end. In addition, at year end the company has $2,400 in merchandise in transit purchased from a supplier shipped FOB destination. Included in its physical inventory is $1,800 in goods held on consignment from a local manufacturer. How much inventory should be reported on the companys January 31, 2009 balance sheet? a. $49,000 b. $51,400 c. $49,600 d. $47,200 5. Goods on Approval a. are considered sold when removed from the sellers premises regardless of whether or not legal title has transferred to the buyer. b. should be included in the sellers physical inventory unless legal title has passed to the buyer. c. are also called consigned goods. d. are not considered to be sold until the buyer has paid a cash deposit to the seller. 6. Independent internal verification of the physical inventory process occurs when a. the employee is required to count all items twice for sake of verification. b. the items counted are compared to the inventory account balance. c. a second employee counts the inventory and compares the result to the count made by the first employee.

d. all prenumbered inventory tags are accounted for. 7. An employee assigned to counting computer monitors in boxes should a. estimate the number if there are a large quantity to be counted. b. read each box and rely on the box description for the contents. c. open each box and check that the box contains a monitor. d. rely on the warehouse records of the number of computer monitors.

8. After the physical inventory is completed, a. quantities are listed on inventory summary sheets. b. quantities are entered into various general ledger inventory accounts. c. the accuracy of the inventory summary sheets is checked by the person listing the quantities on the sheets. d. unit costs are determined by dividing the quantities on the summary sheets by the total inventory costs. 9. All of the following can be involved in taking a physical inventory count except a. counting. b. measuring. c. storing. d. weighing. 10. Westcoe Company's goods in transit at December 31 include sales made (1) FOB destination (2) FOB shipping point and purchases made (3) FOB destination (4) FOB shipping point Which items should be included in Westcoe's inventory at December 31? a. (2) and (3) b. (1) and (4) c. (1) and (3) d. (2) and (4)

4 years ago Report Abuse

Sandy

Best Answer - Chosen by Asker

1. The factor which determines whether or not goods should be included in a physical count of inventory is

b. legal title. 2. If goods in transit are shipped FOB shipping point by a carrier named by the buyer b. the buyer has legal title to the goods when a public carrier accepts the goods from the seller. 3. If goods in transit are shipped FOB destination a. the seller has legal title to the goods until they are delivered. 4. Per its January 31, 2009 physical inventory count, Yager Company has $49,000 in inventory on hand at year end. In addition, at year end the company has $2,400 in merchandise in transit purchased from a supplier shipped FOB destination. Included in its physical inventory is $1,800 in goods held on consignment from a local manufacturer. How much inventory should be reported on the companys January 31, 2009 balance sheet? d. $47,200 5. Goods on Approval a. are considered sold when removed from the sellers premises regardless of whether or not legal title has transferred to the buyer. b. should be included in the sellers physical inventory unless legal title has passed to the buyer. c. are also called consigned goods. d. are not considered to be sold until the buyer has paid a cash deposit to the seller. 6. Independent internal verification of the physical inventory process occurs when c. a second employee counts the inventory and compares the result to the count made by the first employee. 7. An employee assigned to counting computer monitors in boxes should c. open each box and check that the box contains a monitor. 8. After the physical inventory is completed, a. quantities are listed on inventory summary sheets. 9. All of the following can be involved in taking a physical inventory count except c. storing. 10. Westcoe Company's goods in transit at December 31 include sales made (1) FOB destination (2) FOB shipping point and purchases made (3) FOB destination (4) FOB shipping point Which items should be included in Westcoe's inventory at December 31? b. (1) and (4)

4 years ago Report Abuse

Asker's Rating:

Asker's Comment: tnx 4 ur lovely answer