Compare the periodic versus the perpetual system as a control device.

Q: 1. On which of the following instances is cost estimation not permitted? A. Estimating the cost of…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: What is the main difference between a perpetual inventory system and a periodic inventory system?…

A: Inventory can be valued under two methods. 1. perpetual inventory method 2. Periodic inventory…

Q: Classify each of the following accepted accounting practices as conservative or aggressive.1. Use…

A: Conservative Accounting– Conservative accounting practice means use of the technique for…

Q: A major advantage of the retail inventory method is that it hides costs from competitors and…

A: Inventory is the current asset (goods or stock) which is held for the business for sale purpose.…

Q: Current Attempt in Progress If a company overstates its closing inventory, it will O understate…

A: When closing inventory is overstated, this reduces the amount of inventory that would otherwise have…

Q: A company records inventory at gross invoice price. Theoretically, how should the following affect…

A: Solution: Interest on inventory loan do not affect cost of inventory, it is working capital loan…

Q: Which one of the following is a reason for the just-in-time inventory policy? Select one: O A. The…

A: Just in time inventory policy is a policy of inventory management the main purpose of which is to…

Q: a) Compare the periodic versus the perpetual system as a control device. b) What sort of…

A: The periodic and perpetual inventory Systems are two systems used to track the quantity of goods…

Q: Which of the following is not a disadvantage of the LIFO inventory cost flow assumption? a. The…

A: LIFO is the Last in first out method of inventory which says that inventory purchased last should be…

Q: Which inventory method provides a better matching ofcurrent costs with sales revenue on the income…

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: How might a company simplify its use of the NRV method when final selling prices can vary sizably in…

A: Net Realizable Value (NRV) Method: NRV method is a method of joint cost allocation which takes into…

Q: Which of the following is not an advantage of a perpetual inventory system? a. assits in the…

A: Under the perpetual inventory system, transaction related to the inventory is updated immediately as…

Q: Evaluate the following statement: “Without electronicpoint-of-sale terminals, it simply would not be…

A: Given statement is: Without electronic point-of-sale terminals, it simply would not be possible to…

Q: Which of the following might be attributed to efficient inventory management? Select the correct…

A: All of the choices given

Q: For all short exercises, assume the perpetual inventory system is used unless stated otherwise.…

A: Inventory Costing Method:   Under inventory costing method, the flow of cost of inventory is…

Q: 1, how can assets and liabilities be classified for a more informative balance sheet?

A: Introduction :- A classified balance sheet is a financial statement with classifications like…

Q: The major criticism of the lower of cost or market rule for valuation of inventory is that

A:

Q: Which of the following is not utilized by lenders to control inventory that is being used in…

A: Trust receipts are not utilised by lenders.

Q: Do you agree with the following statements? Express your opinion on each statement.

A: 1: This statement is correct  This can be explained with the help of example: Suppose closing stock…

Q: Which one of the following statements is not true? a. A company using the periodic system does not…

A: At the end of the period, there is still a need to match the inventory value with the physical…

Q: The flowchart below illustrates two alternative inventory ordering methods. Answer part 1 to 3 based…

A: The above-mentioned inventory ordering alternatives are used by organizations as per their order…

Q: Explain the purpose of the inventory turnover ratio? Is it possible for a firm to have a high…

A: In finance we make use of various financial ratios to determine the financial health of a company.…

Q: How would your error affect breakeven sales and operating income under the proposed sales commission…

A: Affect of error on break-even sales and operating income:

Q: Why would a "Just in Time" inventory management practice be preferred over a "Just in Case inventory…

A: Just in Time Inventory Management:- It is the inventory technique where labor, material, and other…

Q: Analysts must recognize that the use of the specific identification method to value inventory has a…

A: The amount, by which the Inventory Level exceeds the Closing Inventory level is referred to as the…

Q: Are you correct that, by using LIFO, Kroger reports lower inventory and lowerprofits? Why would…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Q: Which of the following is not a reason for the physical inventory count to differ from what…

A: Inventory is one of the important current asset of the business. This can be in form of raw…

Q: Which of the following is false regarding a perpetualinventory system?a. Physical counts are never…

A: Option “a” is the correct answer that is physical counts are never needed because records are…

Q: How should accounting be able to catch up with the high sales return rates, particularly on…

A: Inventory management: Inventory management can be defined as a system to measure and record the…

Q: Because of increasing profits and inventory prices, the company changed from FIFO to LIFO inventory,…

A: An auditor should provide an unqualified opinion on the financial statements if he believes that the…

Q: Typically, the impact of the LIFO reserve is to decrease cost of goods sold and decrease ending…

A: LIFO method last in first out so LIFO method take last cost of product into account so do not older…

Q: Explain the differences between a Perpetual Inventory system and a Periodic Inventory System.…

A: Periodic Inventory System:-  Its an Inventory Valuation Method where inventory account is updated at…

Q: Which one of the following is a reason for the just- in-time inventory policy? Select one: A. The…

A: Just in time inventory policy means purchasing the inventory when ever required and not maintaining…

Q: A firm that uses LIFO accounting for inventory in times of rising investory costs will always report…

A: FIFO First in first out method is a method of inventory accounting wherein the units of goods…

Q: 2. Shepherd Cycles does not expect prices to change dramatically and wants to use a method that…

A: An inventory valuation allows a business to assign a monetary value to items in its inventory.…

Q: If ending inventory is overstated in the current fiscal year, what effect will this have on net…

A: The question is multiple choice question and related with overstated ending inventory. The ending…