4_Inventories.pdf - 4_Inventory Theory of Accounts 1...

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4_Inventory Theory of Accounts 1.Inventories are assets defined by all of the following,except a.Held for sale in the ordinary course of business.b.In the process of production for such salec.In the form of materials of supplies to be consumed in the production process or the rendering orservicesd.Used in the production or supply of goods and services for administrative purposes. 2.Entities must allocate the cost of all goods available for sale between 3.How is a significant amount of consignment inventory reported? 4.Variable production overheads are allocated to each unit of production on the basis of the 5.Whichincorrectconcerning the maritime termFAS(free alongside)? a.The seller must bear all expenses and risk in delivering the goods to the dock next to the vesselb.The buyer bears the cost of loading and cost of shipment.c.Title passes to the buyer when the carrier takes possession of the goods.d.Title passes upon receipt of the goods by the buyer. 6.The use of a discount lost account implies that the recorded cost of an inventory is 7.Which of the following isnot an acceptable basisfor valuation of inventory?

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