In accounting for consignment sales, sales revenue and the related cost of goods sold should be recognized by the  Group of answer choices  Consignor when the goods are shipped to the consignee  Consignee when cash is received from the customer  Consignor when notification is received that the consignee has sold the goods  Consignor when the goods are shipped to the third party

Q: Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will…

A: The invoice is made by seller based on different terms including discount, and other terms as FOB…

Q: Which of the following items would be included in the inventory account of a manufacturing concern?…

A: The inventory is the cost of goods that are available to be sold during the period.

Q: When merchandise was shipped by the consignor to the consignee and freight on shipment was paid by…

A: When goods are sold all the costs incurred to bring the goods to the desirable location will also be…

Q: Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will…

A: A shipment term which indicates the obligation of either buyer or seller with regard to the goods…

Q: How is total cost of goods sold and the total amount billed to customers calculated?

A: A job cost sheet is a sheet which is used to record the manufacturing costs .

Q: When a customer returns goods, the merchandiser will:

A: Inventory:   Inventory refers to the raw materials, work-in process, and the finished goods…

Q: How should a non vat seller treat input vat paid on the purchases from vat supplier of inventories…

A: The major purpose of adopting VAT is to reduce the effects of multiple taxes and the cascading…

Q: Which of the following statements is correct? Group of answer choices A)Revenue is recognized at the…

A: A)Revenue is recognized at the time of shipment when goods are shipped FOB destination-The given…

Q: State the standard method of determining the cost of goods sold by a retailing or a wholesaling…

A: The cost of goods sold includes the total cost of goods sold include the cost of goods that are sold…

Q: Which of the following expenses would you regard as part of the cost of goods sold? Select one: O a.…

A: Freight in is included in the cost of material. And cost of material is included in cost of goods…

Q: Describe FOB shipping point and FOB destination. When does the buyer take ownership of the goods,…

A: Transportation Costs: The costs of delivering the merchandise inventory from the manufacturer to the…

Q: The customer paid upfront with cash on sales service. Which journal entries are correct? Group of…

A: Everyday businessman performs large number of transactions. These transactions cannot be remembered…

Q: The revenue recognition principle requires retailers to recognise sales revenue when it is earned…

A: The accrual basis accounting system is considered a feature of the accrual base accounting system…

Q: Which of the following items is not a product cost? Multiple Choice Freight cost on goods delivered…

A: Cost included in manufacturing a product are called product costs. Cost of goods sold comprises of…

Q: Which one of the following statements best describes the purpose of a purchase order? A It is issued…

A: Purchase Order: A company before purchasing goods invite qoutation of goods from suppliers. When…

Q: It is used to show who is responsible for paying for shipping and when the title of the goods passes…

A: Payment term used to show who is responsible for paying for shipping and when the title of the goods…

Q: he shipments from branch account is added to the branch's purchases account in determining branch's…

A: solution concept The shipments to branch account from head office forms the part of the cost of…

Q: From the following list, identify those that are likely to serve as source documents.  Trial…

A: A source document refers to the original document that includes all the information of the business…

Q: Consignments refer to that specialized marketing method whereby the Consignee a. holds title to the…

A: Solution: In the consignments model, consignor will remain owner of goods and consignee takes…

Q: Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b.…

A:

Q: Distinguish between FOB Shipping Point and FOB Destination. Identify the freight terms that will…

A: The letter FOB means Free On Board. Those goods that are placed free onboard the carrier by the…

Q: Which of the following statements best explains the relationship between the acquisition/payment…

A: Solution Explanation - Sales collection process is a series of operating events that collectively…

Q: If the sale includes the seller paying the freight costs and assuming the responsibility for…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: t happens after the shipping department verifies that the quantities and descriptions of goods…

A: The sale order may be defined as the order which is generated by the seller of the goods to the…

Q: Sales revenue should be recognized when: a. sales are invoiced. b. payment is received from the…

A: The total amount of income created by the sale of goods or services is referred to as Sales revenue.…

Q: The dollar amount paid by a retailer to acquire a product from a wholesaler is known as the…

A: Goods Purchase Cost: The cost of the products that were bought is the same as the merchandise's net…

Q: Explain how a retailing firm would determine the cost of goods sold during an accounting period.

A: Retailing firms are those firms that are run for the prime purpose of earning profits. The cost of…

Q: ABC Company has shipped goods to one of its customers FOB destination. ABC Company will recognize…

A: >There are two kind of arrangement of purchase/sale transactions:#1: FOB Shipping point, and#2:…

Q: Which account does a merchandiser use that a service company does not use? Cost of Goods Sold…

A:

Q: inventory that it previously purchased. The entry to record that transaction should be: Group of…

A: The journal entries are prepared to record daily transactions of the business.

Q: This cost includes the purchase price of goods and the related expenses incurred to prepare the…

A: Answer: cost of goods sold includes the cost that are incurred for the any goods.

Q: Which of the following would appear on the balance sheet of a merchandiser but not on the balance…

A: The goods that a wholesaler, retailer or distributor obtains from manufacturers that are intended…

Q: Which of the following should be included in inventory on the balance sheet? Goods out on approval…

A: Goods purchased that are in transit F.O.B destination and raw materials will be recorded and…

Q: ccount used under periodic system to record returns of purchased goods to the suppl

A: Solution: Under periodic inventory system, inventory records for each purchase and sale are not…

Q: A seller generally records sales at the full invoice price, butthe buyer often records purchases at…

A: A seller generally records sales at full invoice price, but buyer often records purchase at net…

Q: When goods are sold on a bill-and-hold basis, what conditions must be met to recognize revenue upon…

A: A technique of recognition of revenue under which the revenue is recognized at the point of sale but…

Q: A company indicates the condition of goods obtained onwhich of the following documents?a. Purchase…

A: Answer:   Option c.

Q: When goods are received, the receiving clerk should match the good with_____?          A. The…

A: Under generally accepted accounting principles, Double entry accounting system has to be followed…

Q: Indicate the best answer(s) for each question: Which of the following statements about perpetual…

A: Under perpetual inventory system, the inventory record is maintained with every sale and purchase.

Q: Which of the following statements is true about a purchase order? O a. It is a company's written…

A: The Purchase Order (PO) is a business document and the first official bid issued to a seller by the…

Q: The revenue account for a merchandising business is typically called ___________. Group of answer…

A: Solution: Merchandise business generally involves purchase and sales of merchandise. It is a type of…

Q: Cost of goods sold: Multiple Choice Is another term for merchandise sales. Is the term used for the…

A: The question is based on the concept of Accounting theory.