Accounting quiz,true or false?

1. The sum of the cost of goods sold and ending inventory will always be the same regardless of the inventory valuation (FIFO, LIFO Average Cost) method chosen.











2. Taking a physical inventory count involves counting and valuing each inventory item on hand.











3. A good internal control procedure, when counting inventory, is to use pre-numbered inventory tags and ensure all tags are accounted for at the end of the count.











4. Goods cannot be received when an inventory count is being performed.











5. A physical inventory count need not be performed if the company is using a perpetual inventory system.











6. Goods out on consignment should be included in the inventory of the consignor.











7. Goods that have been purchased FOB destination point but are in transit at year end should be included in the seller鈥檚 physical inventory count.











8. Goods that have been purchased FOB shipping point but are in transit should be included in the buyer鈥檚 physical count of goods.











9. Goods sold on approval should be included in the seller鈥檚 physical count of goods.











10. Goods in transit should be ignored when performing a physical inventory count.


Accounting quiz,true or false?
1. The sum of the cost of goods sold and ending inventory will always be the same regardless of the inventory valuation (FIFO, LIFO Average Cost) method chosen.


False





2. Taking a physical inventory count involves counting and valuing each inventory item on hand.


False (valuing is done by the accountant, not by the counters)





3. A good internal control procedure, when counting inventory, is to use pre-numbered inventory tags and ensure all tags are accounted for at the end of the count.


True





4. Goods cannot be received when an inventory count is being performed.


False. ( You can receive them, just place them in a separate corner of the warehouse, and note this in your count)





5. A physical inventory count need not be performed if the company is using a perpetual inventory system.


False. (It's still good practice to have a count at least annually, cos there could be shrinkage or loss from theft, damage, etc, which won't be captured by the perpetual system)





6. Goods out on consignment should be included in the inventory of the consignor.


True





7. Goods that have been purchased FOB destination point but are in transit at year end should be included in the seller鈥檚 physical inventory count.


True





8. Goods that have been purchased FOB shipping point but are in transit should be included in the buyer鈥檚 physical count of goods.


True





9. Goods sold on approval should be included in the seller鈥檚 physical count of goods.


True. (when goods are delivered on approval, property passes when the buyer adopts the transaction (or fails to give notice of rejection within a reasonable time)).





10. Goods in transit should be ignored when performing a physical inventory count.


True. (How do you perform a PHYSICAL count of something which has not even arrived?)


Accounting quiz,true or false?
1.FALSE


2.TRUE


3.TRUE


4.FALSE


5.FALSE


6.TRUE


7.FOB?


8.FOB?


9.TRUE


10.FALSE





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