ACCT 2401 Exam 2 Study Guide | Accounting Review, Key Concepts &
Practice Questions
Goods sold - ANS ✔✔Merchandise inventory includes all of the following except:
o Goods held for sale
o Goods located in the warehouse
o Goods sold
o Goods located in an off-site warehouse
exclude from inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods in transit shipped to Abbey (purchaser) FOB Destination
include in inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods in transit shipped to Abbey (purchaser) FOB Shipping Point
include in inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods in transit shipped by Abbey (seller) FOB Destination
exclude from inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods in transit shipped by Abbey (seller) FOB Shipping Point
exclude from inventory - ANS ✔✔Do you include inventory or exclude inventory?
, Goods on consignment (Abbey is consignee)
include in inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods on consignment (Abbey is cosigner)
include in inventory - ANS ✔✔Do you include inventory or exclude inventory?
Obsolete inventory that can be sold
exclude from inventory - ANS ✔✔Damaged inventory that can not be resold
$2,401
($2000-$40+$300+$50+$100) - ANS ✔✔An item was shipped from a supplier under FOB
shipping point. The invoice in the amount of $2,000 included payment terms of 2/10, n/30.
When the invoice was paid, a purchase discount in the amount of $40 was taken. Other details
relating to the purchase of this item included the following: shipping charges of $300, storage
fees of $50, and insurance premium of $100. The cost of this inventory item is _____.
Yes - ANS ✔✔If an item ships FOB Shipping. Point, do you include the shipping cost. in inventory
calculation?
a physical inventory count should be taken at least annually. - ANS ✔✔If a perpetual inventory
system is in use _____.
LIFO - ANS ✔✔Complete each sentence by selecting the correct term using the drop-down list.
Practice Questions
Goods sold - ANS ✔✔Merchandise inventory includes all of the following except:
o Goods held for sale
o Goods located in the warehouse
o Goods sold
o Goods located in an off-site warehouse
exclude from inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods in transit shipped to Abbey (purchaser) FOB Destination
include in inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods in transit shipped to Abbey (purchaser) FOB Shipping Point
include in inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods in transit shipped by Abbey (seller) FOB Destination
exclude from inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods in transit shipped by Abbey (seller) FOB Shipping Point
exclude from inventory - ANS ✔✔Do you include inventory or exclude inventory?
, Goods on consignment (Abbey is consignee)
include in inventory - ANS ✔✔Do you include inventory or exclude inventory?
Goods on consignment (Abbey is cosigner)
include in inventory - ANS ✔✔Do you include inventory or exclude inventory?
Obsolete inventory that can be sold
exclude from inventory - ANS ✔✔Damaged inventory that can not be resold
$2,401
($2000-$40+$300+$50+$100) - ANS ✔✔An item was shipped from a supplier under FOB
shipping point. The invoice in the amount of $2,000 included payment terms of 2/10, n/30.
When the invoice was paid, a purchase discount in the amount of $40 was taken. Other details
relating to the purchase of this item included the following: shipping charges of $300, storage
fees of $50, and insurance premium of $100. The cost of this inventory item is _____.
Yes - ANS ✔✔If an item ships FOB Shipping. Point, do you include the shipping cost. in inventory
calculation?
a physical inventory count should be taken at least annually. - ANS ✔✔If a perpetual inventory
system is in use _____.
LIFO - ANS ✔✔Complete each sentence by selecting the correct term using the drop-down list.
