Q19 procedure reduces record-keeping,it also reduces control over inventory items.a. None of the optionsb. Periodic inventory systemO c. Both periodic and perpetualinventory systemO d. Perpetual inventory system

There are two inventory methods which are followed by the entity which are, (1) Periodical inventory…

procedure reduces record-keeping, it also reduces control over inventory items. a. None of the options O b. Periodic inventory system O c. Both periodic and perpetual inventory system O d. Perpetual inventory system

procedure reduces record-keeping, it also reduces control over inventory items. a. None of the options O b. Periodic inventory system O c. Both periodic and perpetual inventory system O d. Perpetual inventory system

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 4QY: This type of inventory system does not require an entry to Merchandise Inventory until a physical...

See similar textbooks

Related questions

Q: Determine the effects of inventory errors on the financial statements.

A: If you understated ending inventory, your cost of goods sold will be overstated by the error amount,…

Q: The elimination entry under the perpetual inventory system for intercompany sales is a debit to…

A: SOLUTION- THE ELIMINATION ENTRY REMOVES IC SALES FROM THE CONS. UNIT (VENDOR) AND IC PURCHASE FROM…

Q: Taking a physical count of inventory Oa. is not necessary when a perpetual inventory system is used…

A: Under the perpetual inventory system, inventory is recorded on every inventory transaction. So a…

Q: Under the perpetual inventory system, increases and decreases in inventory are recorded through the…

A: Solution: Under perpetual inventory system, inventory records are updated with every purchase and…

Q: Which of the following costs do not come under inventory carrying cost calculation? Investment in a…

A: The ideal order quantity for a corporation to purchase in order to minimize inventory costs is known…

Q: If inventory errors are said to correct themselves, why are accounting users concerned when such…

Q: Ethics within inventory estimates and other creative accounting methods. Channel stuffing, swaps,…

A: Ethics implies the arrangement of rules that the association ought to follow. While in business,…

Q: Periodic inventory system is used for high in value items. Select one: True False

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

Q: What is the main distinction between perpetual and periodic inventory systems? Which type of system…

A: Explain the main distinction between perpetual inventory system and periodic inventory system and to…

Q: Explain the appropriate accounting treatment required when a change in inventory method is made.

A: Definition: Change in inventory method: Change in inventory method is said to be the difference…

Q: Management is prone to overstate: a. accounts receivable and inventory. b. accounts…

A: The sum shown on the financial statement is higher than it should have been if accounts or a number…

Q: The specific identification inventory method should be used when the inventory consists of…

A: Specific identification inventory method: It is a method used to value the inventory. It calculates…

Q: What are the key factors that can lead to an under/overstatement of the inventory balance?

A: Answer: Inventory balances are sometimes overstated and sometimes understated.

Q: A master production schedule is most likely to be useful in O identifying erroneous journal entries.…

A: Solution: A master production schedule is the prepared by company to estimate its production for the…

Q: what are the objectives of eliminating the receiving function. What accounting/audit problems need…

A: Receiving Department: The receiving department is in obligation of inspection and the receiving…

Q: Taking a physical count of inventory a.is not necessary when a periodic inventory system is used…

A: In the periodic method, the inventory is counted at the end of the accounting period. but in the…

Q: t is possible to calculate shrinkage Multiple Choice a)in Periodic Inventory Accounting but not…

A: Inventory shrinkage is the additional amount of inventory in the accounting records in comparison to…

Q: Perpetual inventory valuation system does not require.... a. physical count or measurement of…

A: The question is multiple choice question Required Choose the Correct Option.

Q: Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration…

A: Overstatement of ending inventory will reduce the cost of goods sold and also increase the opening…

Q: No entry is made to recognize cost of goods sold when inventory is sold under periodic inventory…

A: Solution: Under periodic inventory system, inventory is not updated with every purchase and sales,…

Q: With a perpetual inventory system inventory shortages through lost or stolen goods can be readily…

A: In Perpetual Inventory system the stock records are kept up-to-date, by fast recording the…

Q: When the merchandise inventory account provides a running balance of the goods on hand, which…

A: The question is related to Inventory system. There are two methods of Inventory.Perpetual 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: Under a just-in-time inventory system, management strives to O None of the answers are correct.…

A: Answer is = Have inventory available when it is needed.

Q: 48. Which of the following statements is incorrect about perpetual inventory system? a. Inventory…

A: Inventory is the current asset for the company that is reported under the head current asset in the…

Q: a. Permits entities to avoid taking an annual physical d. Provides a method for inventory control…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain the appropriate accounting treatment required when an inventory error is discovered.

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Which inventory method is least likely to be used under IFRS? A . First in, fi rst out (FIFO).

A: Inventory is an important current asset for an organisation’s accounting, thus it is essential that…

Q: Taking a physical count of inventory is not necessary when a periodic inventory system is used…

A: Dear student, as per Bartleby answering guidelines we can answer only the first question. To get the…

Q: 19) The inventory system which do not use merchandise inventory account and reduces the record…

A: The company basically uses two types of system to maintain the record of sales and purchase of…

Q: When identical units of an item are purchased at different costs a. an inventory cost flow method…

A: The inventory cost flow method states the manner to record the cost of goods sold and cost of ending…

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: Under a perpetual inventory system, acquisition of inventory is dented to the purchases account.…

A: Under the perpetual inventory system, Inventory transection is charged through the merchandise…

Q: Which of the following is NOT an inventory management technique?

A: Every business unit follows an inventory management process to manage its stock of goods efficiently…

Q: In the expenditure cycle, the control procedure of comparing inwards goods documents to vendor…

A: Solution : Correct answer are -failure to take advantage of discounts for prompt…

Q: Some inventory errors are said to be “self-correcting,” in that the error has the opposite financial…

A: Errors: Despite best efforts, occasionally an error is made on the financial statement. Most often,…

Q: A serious exposure for an organization that is connnected with the revenue cycle is the loss of…

A: In this question we asked about a serious exposure for an organization that is connnected with the…

Q: Which of the following is not an example of safeguarding inventory? a. physical devices such as…

A: From the given options, option (b) is the correct answer: Explanation: Returning inventory…

Q: A serious exposure in the ordering process of the expenditure cycle is increased inventory costs.…

A: Inventory Cycle: The inventory cycle is the method involved with getting, arranging, and dealing…

Question

Q19

procedure reduces record-keeping,
it also reduces control over inventory items.
a. None of the options
b. Periodic inventory system
O c. Both periodic and perpetual
inventory system
O d. Perpetual inventory system

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

One reason for inventory is to prevent shutdowns. How does the JIT approach to inventory management deal with this potential problem?
Does the use of a perpetual system eliminate the need for taking a physical inventory count?
How long does it take an inventory error affecting ending inventory to correct itself in the financial statements? Explain.
Which of the following would cause periodic ending inventory to be overstated? A. Goods held on consignment are omitted from the physical count. B. Goods purchased and delivered, but not yet paid for, are included in the physical count. C. Purchased goods shipped FOB destination and not yet delivered are included in the physical count. D. None of the above
Errors A company that uses the periodic inventory system makes the following errors: 1. It omits a purchase on credit from the purchases account and the ending inventory. 2. It omits a purchase on credit from the purchases account, but the ending inventory is correct. 3. It overstates the ending inventory, but purchases arc correct. Required: Indicate the effect of the preceding errors on the income statement and the balance sheet of the current and succeeding years.
Perpetual versus Periodic Inventory Systems Graham Company is trying to select an inventory system. Below are several statements that pertain to inventory systems. 1. Cost of goods sold is only determined at the end of the period after a physical count of inventory. 2. A physical count of inventory is performed. 3. Purchases of inventory are recorded in a purchases account. 4. Cost of goods sold is determined continually during the period as sales are made. 5. Greater control over inventory is possible. 6. This inventory system is relatively inexpensive to operate. Required: Select the inventory system, perpetual or periodic, that is best represented by each statement. If the statement applies to both systems, select both.
Prepare Journal entries to record the following transactions, assuming perpetual inventory updating, and last-in, first-out (LIFO) cost allocation. Assume no beginning inventory.
This type of inventory system does not require an entry to Merchandise Inventory until a physical inventory has been taken. a. Periodic inventory system b. Perpetual inventory system c. Merchandise inventory system d. Beginning inventory system e. Ending inventory system
Errors in Ending Inventory From time to time, business news will report that the management of a company has misstated its profits by knowingly establishing an incorrect amount for its ending inventory. Required: Explain how a misstatement of ending inventory can affect profit.
Which of the following is an advantage of the periodic inventory system? A. frequent physical inventory counts B. cost prohibitive C. time consuming D. real-time information for managers
Prepare journal entries to record the following transactions, assuming perpetual inventory updating and first-in, first-out (FIFO) cost allocation. Assume no beginning inventory.