ACCT 2121 Chapter 6 100% SOLUTION 2023//2024

100% SOLUTION 2023//2024 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 judgment d. whether or not the purchase price has been paid - ANSWER B 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 until they are delivered 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 - ANSWER A 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 - ANSWER C An employee assigned to counting computer monitors in boxes should a. estimate the number if there is a large quantity to be counted b. read each box and rely on the box description for the contents c. determine that the box contains a monitor d. rely on the warehouse records of the number of computer monitors - ANSWER C 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. - ANSWER A When is a physical inventory usually taken? a. When goods are not being sold or received b. When the company has its greatest amount of inventory c. At the end of the company's fiscal year d. When the company has its greatest amount of inventory and at the end of the company's fiscal year - ANSWER C