ACCT 2121 Chapter 6 100% 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