Question

MCQ- The basic rule of a company should follow when conducting a physical inventory count is...

MCQ- The basic rule of a company should follow when conducting a physical inventory count is to count-

a. all merchandise purchased in December only,

b. All merchandise physically present.

c. only that merchandise that the business owns,

d. All merchandise physically present and in transit.

Explain in detail

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer : d) all the merchandise physically present and in transit

Explanation : 1.counting the inventory mannualy is called physical inventory count

2.generally physical inventory count is done at the end of the month or quarter or year

3. When counting the inventory, you should count all physically presented merchandise and also consider inventory in transit.

4. You should consider also merchandise transfers from one place to another place

5.you should check all the purchase receipts and issue vochurs

6. It is the process of counting all the physical inventory and inventory in transit mannualy for matching the count with the inventory records

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to...
The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $464,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $64,000. The purchase was recorded and paid for in 2022. Another supplier shipment costing $27,000 was correctly recorded as a purchase in 2021. However, the merchandise, shipped FOB shipping point, was not received until 2022 and was incorrectly omitted from the...
Marigold Company took a physical inventory on December 31 and determined that goods costing $208,900 were...
Marigold Company took a physical inventory on December 31 and determined that goods costing $208,900 were on hand. Not included in the physical count were $23,260 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $20,450 of goods sold to Alvarez Company for $28,200, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Marigold report as its December 31 inventory? December 31 inventory $enter inventories at December 31 in dollars
Waterway Inc. took a physical inventory at the end of the year and determined that $847000...
Waterway Inc. took a physical inventory at the end of the year and determined that $847000 of goods were on hand. In addition, the following items were not included in the physical count. Waterway, Inc. determined that $95500 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count). The company sold $39500 worth of inventory f.o.b. destination that did not reach the destination yet. What amount...
Larkspur, Inc. took a physical inventory on December 31 and determined that goods costing $235,000 were...
Larkspur, Inc. took a physical inventory on December 31 and determined that goods costing $235,000 were on hand. Not included in the physical count were $25,800 of goods purchased from Pelzer Corporation, FOB shipping point, and $22,000 of goods sold to Alvarez Company for $28,600, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Larkspur report as its December 31 inventory?
Splish Brothers Inc. took a physical inventory on December 31 and determined that goods costing $226,000...
Splish Brothers Inc. took a physical inventory on December 31 and determined that goods costing $226,000 were on hand. Not included in the physical count were $31,000 of goods purchased from Novak Corp., FOB, shipping point, and $26,500 of goods sold to Crane Company for $33,000, FOB destination. Both the Novak purchase and the Crane sale were in transit at year-end. What amount should Splish Brothers report as its December 31 inventory? Ending Inventory: $?
Which of the following should not be included in the year-end inventory balance of a company?...
Which of the following should not be included in the year-end inventory balance of a company? Goods the company owns, but has placed on consignment with another company. Goods shipped from the company's supplier that were shipped F.O.B. shipping point on December 31, and are now in transit. Goods the company shipped to a customer F.O.B. destination that are in transit on December 31. All choices should be included. Entity G uses the percentage of receivables method for recording bad...
Minun Company uses a periodic inventory method. At December 31,2017, Minun Company took a physical count...
Minun Company uses a periodic inventory method. At December 31,2017, Minun Company took a physical count of inventory but erroneously forgot to include inventory that they consigned to another company for sale. In the following year end, the company correctly counted their inventory. This error will: increase net income in 2017 and decrease net income in 2018. decrease net income in 2017 and increase net income in 2018. increase net income in both 2017 and 2018. decrease net income in...
Why might a company estimate ending inventory instead of performing a physical count? The mathematical estimates...
Why might a company estimate ending inventory instead of performing a physical count? The mathematical estimates can determine if inventory has been lost. The mathematical estimates are more accurate than 'doing inventory.' The mathematical estimates take less time and are all acceptable under GAAP. The mathematical estimates result in greater job security for accounting staff. When can we NOT use the ending inventory estimate from the gross profit method? When performing a quick check of reporting inventory as an auditor....
The Constance Corporation’s inventory at December 31, 2021, was $125,000 (at cost) based on a physical...
The Constance Corporation’s inventory at December 31, 2021, was $125,000 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following: Merchandise costing $15,000, shipped f.o.b. shipping point from a vendor on December 27, 2021, was received by Constance on January 5, 2022. Merchandise costing $45,000 was shipped to a customer f.o.b. shipping point on December 28, 2021, arrived at the customer’s location on January 6, 2022. Merchandise costing $21,000 was being held...
In your audit of Henry Company, you find that a physical inventory on December 31, 2017,...
In your audit of Henry Company, you find that a physical inventory on December 31, 2017, showed merchandise with a cost of $411,580 was on hand at that date. You also discover the following items were all excluded from the $411,580. 1. Merchandise of $60,710 which is held by Henry on consignment. The consignor is the Max Suzuki Company. 2. Merchandise costing $38,360 which was shipped by Henry f.o.b. destination to a customer on December 31, 2017. The customer was...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT