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true false questions 1 goods in transit are automatically included in inventory 2 go 4299203

True / False Questions

1. Goods in transit are automatically included in inventory. 

2. Goods on consignment are goods shipped by their owner, called the consignee, to another party called the consignor. 

3. If obsolete or damaged goods can be sold, they will be included in inventory at their net realizable value. 

4. If the seller is responsible for paying freight charges, then ownership of inventory passes when goods arrive at their destination. 

5. Net realizable value for damaged or obsolete goods is sales price plus the cost of making the sale. 

6. The cost of an inventory item includes its invoice cost minus any discount, and plus any added or incidental costs necessary to put it in a place and condition for sale. 

7. When taking a physical count of inventory, the use of prenumbered inventory tickets is an application of internal control. 

8. Incidental costs often added to the costs of inventory include import duties, freight, storage, and insurance. 

9. The Inventory account is a controlling account for the inventory subsidiary ledger that contains a separate record for each separate product. 

10. Few companies take a physical count of inventory each year, and rely on inventory records alone to determine the inventory value. 

 

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