5. A café that sells smoothies often has fruit that becomes rotten and the employees have to throwit away. What type of system does the café use to count inventory?Oagricultural inventory systemOperiodic inventory systemperpetual inventory systemcontinuous inventory system

The continuous Inventory system records inventory balances after every transaction that takes place…

Answered: A café that sells smoothies often has…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 5TP: You own a clothing store and use a periodic inventory system. Research like companies in the...

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You own a clothing store and use a periodic inventory system. Research like companies in the clothing industry and answer the following questions. Which inventory system is most used in clothing stores, periodic or perpetual? Why can periodic inventory reporting be a better approach to use than perpetual inventory reporting for this type of industry? What are some of the advantages and disadvantages to the periodic inventory method? What other types of businesses may use the periodic inventory method rather than the perpetual method?
A retail business like Best Buy experiences some loss of inventory due to shoplifting, employee theft, or errors. The difference between the physical inventory count at the end of the accounting period and the balance of Merchandise Inventory in the accounting records is called ___________. Group of answer choices inventory reduction. inventory theft. inventory loss. inventory shrinkage or inventory shortage.
Which of the following statements relative to book (perpetual) inventory systemsIs false?a. Use of book inventory system allows a retailer to know at all times the value ofinventory on hand without having to take a physical inventory.b. Book inventory systems can be maintained on either a retail dollar or a costdollar basis.c. Cost dollar control is used more in retailing than retail dollar control.d. A cost dollar control system is used when merchandise is of an unusually high unitvalue and there are relatively few transactions.e. When using a cost system, it is not possible to record additional markups andreductions because all the figures in the cost system are in cost dollars.
What is the main source of income for a buying and selling company? 2. Between the operational cycle of a service company and a buying and selling company, which is the longest? 3. What inventory systems do you know are used in a buying and selling business? 4. What are the important factors in using a perpetual inventory system? 5. In which financial statement is the inventory account balance presented? 6. Mention the two forms of Income and Expense Statement that can be used. 7. Indicate the effects of inventory errors on the financial statements 8. What are the methods used to determine the cost of goods?
JFC Corporation values its inventory by using retail method: 1. How much is the ending inventory at cost assuming the company uses average LCM approach? 2. How much is the ending inventory at cost assuming the company uses average retail approach? 3. How much is the ending inventory at cost assuming the company uses FIFO retail approach? 4. How much is the ending inventory at cost assuming the company uses FIFO LCM approach?
Please answer with reason for all why the option is correct and why the other options are incorrectPlease answer correct otherwise skip it When preparing the worksheet for a merchandising business using the perpetual inventory system,which of the following is not a new merchandising account that is shown on the worksheet?A) Accumulated Depreciation — BuildingB) Sales Returns and AllowancesC) Cost of Goods SoldD) Merchandise Inventory
Journal entries for recording revenue and costs for service provider. For a traditional inventory-carrying companies, recording journal entries for revenue and costs is something like the following: Dr. Cash $100 Cr. Revenue $100 Dr. Cost of goods sold $50 Cr. Inventory $50 How does the journal entry work for service companies such as SaaS firms that do not carry inventory?
AZO Co. currently uses a periodic inventory system. Mr. Sohaim, the owner, is consideringthe purchase of a computer system that would make it feasible to switch to a perpetualinventory system. Mr. Hasan is unhappy with the periodic inventory system because it doesnot provide timely information on inventory levels. Mr. Hasan has noticed on severaloccasions that the store runs out of good-selling items, while too many poor-selling itemsare on hand. Mr. Hasan is also concerned about lost sales while a physical inventory is beingtaken. AZO Co. currently takes a physical inventory twice a year. To minimize distractions,the store is closed on the day inventory is taken. Mr. Hasan believes that closing the store isthe only way to get an accurate inventory count.1. Will switching to a perpetual inventory system strengthen AZO Co.’s control overinventory items?2. Will switching to a perpetual inventory system eliminate the need for a physicalinventory count?3. How IAS-2 is applicable here?
Subject : Accounting You just took a new job as a controller of a large company that purchases and sells surf boards (has inventory). The owner has asked you to advise her on how she should select the correct inventory valuation method for the inventory (LIFO, FIFO and Weighted Average). What would be your response?
JFC Corporation values its inventory by using retail method: 1. How much is the ending inventory at cost assuming the company uses average LCM approach? 2. How much is the ending inventory at cost assuming the company uses average retail approach? 3. How much is the ending inventory at cost assuming the company uses FIFO retail approach?
Without a computerized inventory accounting system, a perpetual inventory system would most easily be used by a? Automobile dealership, hardware store, drugstore, or consumer-electronics store.
Triple Creek Hardware Store currently uses a periodic inventory system. Kevin Carlton, the owner, is considering the purchase of a computer system that would make it feasible to switch to a perpetual inventory system.Kevin is unhappy with the periodic inventory system because it does not provide timely information on inventory levels. Kevin has noticed on several occasions that the store runs out of good-selling items, while too many poor-selling items are on hand.Kevin is also concerned about lost sales while a physical inventory is being taken. Triple Creek Hardware currently takes a physical inventory twice a year. To minimize distractions, the store is closed on the day inventory is taken. Kevin believes that closing the store is the only way to get an accurate inventory count. Will switching to a perpetual inventory system strengthen Triple Creek Hardware’s control over inventory items? Will switching to a perpetual inventory system eliminate the need for a physical inventory…

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A café that sells smoothies often has fruit that becomes rotten and the employees have to throw away. What type of system does the café use to count inventory? Oagricultural inventory system Operiodic inventory system Operpetual inventory system Ocontinuous inventory system