Podcast
Questions and Answers
What are the two characteristics of merchandise inventory in a merchandising company?
What are the two characteristics of merchandise inventory in a merchandising company?
- They are in a form ready for sale to customers and owned by suppliers.
- They are owned by the company and in a form ready for sale to customers. (correct)
- They are owned by suppliers and in a form ready for sale to customers.
- They are owned by customers and in a form ready for sale to suppliers.
What is the classification of inventory in a manufacturing environment?
What is the classification of inventory in a manufacturing environment?
- Raw materials, finished goods, and manufacturing inventory
- Raw materials, work in progress, and finished goods (correct)
- Raw materials, work in progress, and merchandise inventory
- Finished goods, work in progress, and merchandise inventory
What is the purpose of segregating duties when taking a physical inventory?
What is the purpose of segregating duties when taking a physical inventory?
- To ensure that employees are not responsible for counting the inventory they are in charge of. (correct)
- To ensure that employees are responsible for counting the inventory they are in charge of.
- To ensure that only one employee is responsible for counting the inventory.
- To ensure that multiple employees are responsible for counting the inventory.
What is the formula for calculating the gross profit percentage?
What is the formula for calculating the gross profit percentage?
What is the significance of inventory on the balance sheet of a merchandising company?
What is the significance of inventory on the balance sheet of a merchandising company?
What is the objective of merchandise inventory management techniques?
What is the objective of merchandise inventory management techniques?
Which of the following is a key aspect of establishing responsibility in inventory management?
Which of the following is a key aspect of establishing responsibility in inventory management?
Goods in transit are included in the inventory of the party that has:
Goods in transit are included in the inventory of the party that has:
In a consignment arrangement, who owns the goods until they are sold?
In a consignment arrangement, who owns the goods until they are sold?
What is the primary difference between a perpetual inventory system and a periodic inventory system?
What is the primary difference between a perpetual inventory system and a periodic inventory system?
Which of the following is an independent internal verification technique?
Which of the following is an independent internal verification technique?
What type of inventory system maintains detailed records of the cost of each item and determines the cost of each item sold when the sale occurs?
What type of inventory system maintains detailed records of the cost of each item and determines the cost of each item sold when the sale occurs?
What is the primary difference between periodic and perpetual inventory systems?
What is the primary difference between periodic and perpetual inventory systems?
In a periodic inventory system, when is the cost of goods sold calculated?
In a periodic inventory system, when is the cost of goods sold calculated?
What is the purpose of taking a physical inventory in a periodic inventory system?
What is the purpose of taking a physical inventory in a periodic inventory system?
How are inventory costs allocated in a periodic inventory system?
How are inventory costs allocated in a periodic inventory system?
What is the result of subtracting the cost of ending inventory from the cost of goods available for sale?
What is the result of subtracting the cost of ending inventory from the cost of goods available for sale?
According to the matching principle, what is deducted from sales revenue to get gross profit?
According to the matching principle, what is deducted from sales revenue to get gross profit?
