CH. 6 WILEY PLUS PRACTICE
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+ NEWLY UPDATED 2025
When the terms of a sale are FOB destination, legal title to the goods passes to the
buyer when the goods reach the buyer's place of business.
a) True
b) False - ANSWER✔✔ a) True
Merchandising firms usually classify their inventory into raw materials, work in
process and finished goods.
a) True
b) False - ANSWER✔✔ b) False
When is a physical inventory usually taken?
a) When the company has its greatest amount of inventory.
b) When goods are not being sold or received.
c) At the end of the company's fiscal year.
d) When a company has its greatest amount of inventory and when goods are not
being sold or received. - ANSWER✔✔ c) At the end of the company's fiscal year.
Which of the following should not be included in the physical inventory of a
company?
, a) Goods shipped on consignment to another company
b) Goods in transit from another company shipped FOB shipping point
c) Goods held on consignment from another company
d) All of the answer choices are correct - ANSWER✔✔ c) Goods held on
consignment from another company
As a result of a thorough physical inventory, Railway Company determined that it
had inventory worth $180,000 at December 31, 2017. This count did not take into
consideration the following transactions:
• Rogers Consignment store currently has goods worth $35,000 on its sales floor
that belong to Railway but are being sold on consignment by Rogers. The selling
price of these goods is $50,000.
• Railway purchased $13,000 of goods that were shipped on December 27, FOB
destination, that will be received by Railway on January 3.
Determine the correct amount of inventory that Railway should report.
a) $230,000
b) $228,000
c) $215,000
d) $193,000 - ANSWER✔✔ c) $215,000
Which of the following is not an inventory account?
a) Finished goods
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+ NEWLY UPDATED 2025
When the terms of a sale are FOB destination, legal title to the goods passes to the
buyer when the goods reach the buyer's place of business.
a) True
b) False - ANSWER✔✔ a) True
Merchandising firms usually classify their inventory into raw materials, work in
process and finished goods.
a) True
b) False - ANSWER✔✔ b) False
When is a physical inventory usually taken?
a) When the company has its greatest amount of inventory.
b) When goods are not being sold or received.
c) At the end of the company's fiscal year.
d) When a company has its greatest amount of inventory and when goods are not
being sold or received. - ANSWER✔✔ c) At the end of the company's fiscal year.
Which of the following should not be included in the physical inventory of a
company?
, a) Goods shipped on consignment to another company
b) Goods in transit from another company shipped FOB shipping point
c) Goods held on consignment from another company
d) All of the answer choices are correct - ANSWER✔✔ c) Goods held on
consignment from another company
As a result of a thorough physical inventory, Railway Company determined that it
had inventory worth $180,000 at December 31, 2017. This count did not take into
consideration the following transactions:
• Rogers Consignment store currently has goods worth $35,000 on its sales floor
that belong to Railway but are being sold on consignment by Rogers. The selling
price of these goods is $50,000.
• Railway purchased $13,000 of goods that were shipped on December 27, FOB
destination, that will be received by Railway on January 3.
Determine the correct amount of inventory that Railway should report.
a) $230,000
b) $228,000
c) $215,000
d) $193,000 - ANSWER✔✔ c) $215,000
Which of the following is not an inventory account?
a) Finished goods
