Explain whether the physical inventory should be equal to the amount indicated by the inventory record under the perpetual inventory system

Q: In which financial statement is the inventory account balance presented?

A: In general there are Four Major components of financial statements a) Balance Sheet  b) Profit and…

Q: How do you enter an adjusting entry for Inventory?

A: Inventory adjustment Fluctuation in the inventory is a serious issue for a business entity. The…

Q: Do you apply the LCNRV method to each individual item, to a category, or to the total of the…

A:

Q: From the information provided below can you please complete the given table using the FIFI method of…

A: Under FIFO Method, units which came in first will be issued first and the inventory will be out of…

Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…

A: Perpetual inventory system: Perpetual Inventory System refers to the inventory system that maintains…

Q: Explain what is meant by the Internal Revenue Service conformity rule with respect to the inventory…

A: Internal Revenue Service conformity rule is when prices rise and inventory quantities are not…

Q: If the net realizable of an entity's inventories is less than its cost, the entry to adjust the…

A: Introduction: Under the lower of cost or net realizable value (LCNRV) method, if net selling price…

Q: What is the effect of an entry to record the purchase of inventory on account under the perpetual…

A: Under the perpetual inventory system, purchases are directly debited to the "Inventory account". And…

Q: What is inventory shrinkage? Describe the adjusting entry that would be recorded to account for…

A: Inventory shrinkage: When there is a difference between inventory as per books and actual inventory…

Q: How is the allowance for the inventory write-down shown in the statement of financial position? a.…

A: Inventory means the stock of goods in hand . Goods means is the thing in which the business deals…

Q: Which inventory system maintains a running record of inventory on hand, purchased,and sold?a.…

A: Answer:   Option d

Q: What account is debited when recording a purchase of inventory when using the perpetual inventory…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: according to which section (s) in the Accounting Act the inventory is assessed. Explain your reasons…

A: Inventory includes the goods available for sale in the normal course of business or the finished…

Q: What is the method of accounting of inventory in which the cost of goods is recorded each time a…

A: The cost of goods included the cost of goods that are sold during the period.

Q: oods purchased and held for resale are commonly known as _____. perpetual inventoryperiodic…

A: Periodic Inventory System: The periodic inventory system records and updates the inventory at the…

Q: The two main inventory accounting systems are the a. perpetual and periodic. b. purchase and sale.…

A: Purchase and sale are the transaction made by the company. It is not an inventory system. Returns…

Q: What is the difference between a perpetual inventoryand a physical inventory? If a company maintains…

A: Differentiate between a physical inventory system and a perpetual inventory system. Perpetual…

Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…

A: Given description is:  Requires an adjusting entry to record inventory shrinkage.

Q: What are the main differences between periodic inventory system and perpetual inventory system?…

A: Periodic inventory system: A periodic inventory system may be a variety of inventory valuation…

Q: Determine ending inventory by applying the retail inventory method.

A: Retail inventory method: It takes into account all the retail amounts that is, the current selling…

Q: xplain the difference between perpetual inventory system and periodic inventory system

A: Companies and organizations can record their inventories using any of the two inventory system -…

Q: How about the cost of inventory held by the consignee

A: Cost of inventory includes purchase cost of inventory, it's conversation cost and any other expenses…

Q: What are the purposes of the period-end adjustment under the periodic inventory system?

A: Periodic inventory system:   The method or system of recording the transactions related to…

Q: Inventory taken by the owner of the entity for personal use, will affect which of the following…

A: Periodic inventory system is the system of accounting in which inventory is calculated at the end of…

Q: Under the new revenue recognition standard, how is the sale of inventory recorded?

A: Revenue: It refers is the total amount of earnings generated from selling goods or rendering…

Q: what is the amount allocated to ending inventory on a LIFO basis?

A: Using the LIFO method, the last purchased units are sold first. Periodic inventory records inventory…

Q: Is purchases is the account to be debited upon purchase of merchandise under the perpetual inventory…

A: Perpetual Inventory System It is the most important part of the business to enter the transactions…

Q: Prepare the inventory records using the First-in-first-out (FIFO) method.

A: FIFO Method - In this method, the quantity which is purchased first is sold first and basis on that…

Q: When recording purchase returns and purchase allowances under the periodic inventory system, what…

A: Periodic Inventory System:Periodic inventory system is a system in which the inventory is updated…

Q: Explain how the sale of inventory on account is recorded under a periodic system. How does this…

A:

Q: What account is debited when recording a purchase of inventory when using a periodic inventory…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: Discuss the primary difference between U.S. GAAP and IFRS with respect to determining the cost of…

A:

Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…

A: Definition: Perpetual inventory: Under the perpetual inventory system, each transaction for the…

Q: why both the "beginning inventory" and "ending inventory" figures both appear on the Income…

A: Periodic inventory system is a inventory system in which all purchase and sale transactions related…

Q: 1. Before inventory purchases are recorded, the receiving report should be reconciled to what…

A: Inventory: Inventory refers to the raw materials, work in progress, and finished goods that are held…

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

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: Describe the recording process for purchases of merchandise inventory using a Perpetual inventory…

A: Under perpetual inventory system, changes in merchandise inventory account are recorded after each…

Q: Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: What is the difference between perpetual and periodic inventory system

A: Introduction:- The most important variation between the periodic and perpetual inventory systems is…

Q: A purchase order establishes an initial record of the receipt of the inventory. O True O False

A: A purchase order or PO refers to a commercial document officially issued by the buyer to a seller…

Q: Under which type of inventory system is an inventory sub-sidiary ledger maintained?

A: Inventory subsidiary ledger is a ledger or account that is used to record all inventory related…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.