Ending inventory is determined by a physical the end

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Chapter 8 / Exercise 8
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subtracting ending inventory. Ending inventory is determined by a physical count atthe end of the year under a periodic inventory system. Even in a perpetual inventory system, a physical inventory count at year-end is normally taken due to the potential for loss, error, or shrinkage of inventory during the year.5.Inventory planning and control is of vital importance to the success of a merchandising or manufacturing concern. If an excessive amount of inventory is accumulated, there is the danger of loss owing to obsolescence. If the supply of inventory is inadequate, the potential for lost sales exists. This dilemma makes inventory an asset to which management must devote a great deal of attention.
6.Reconciliation between the recorded inventory amount and the actual amount of 
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Chapter 8 / Exercise 8
Blueprint Reading for Welders
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INTERMEDIATE ACCOUNTING I1-3
7.The cost of goods sold during any accounting period is defined as all the goods available for sale during the period less any unsold goods on hand at the end of the period (ending inventory). The process of computing cost of goods sold is complicated by the determination of (a) the physical goods to be included in 
 
9.In actual practice a few exceptions exist regarding the general rule that inventory is recorded by the company that has legal title to the merchandise. These exceptions are known as special sale agreements. Two of the more common special sale agreements are (a) sales with a buy back agreement and (b) sales with high rates of 

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