Which of the following events or transactions would not lead to the recognition of the cost of inventory as expense? The inventory is written down The inventory is distributed for free The inventory is exchanged for dissimilar inventory The inventory is consumed in the manufacturing process

Q: 28-Which of the following element of cost is important in calculating the cost of closing inventory?…

A: Closing inventory is amount remaining unsold at the end of the period.

Q: IFRS and GAAP are similar for all of the following inventory accounting standards except IFRS…

A: IFRS allows the inclusion of overhead in inventory. In IFRS the use of LIFO cost flow assumption is…

Q: Which of the following statement about the inventory write-down is not correct? * If the cost is…

A: As per International Accounting Standards IAS 2- “ Inventory includes assets that are held for the…

Q: Which of the following is not permitted as a cost of inventory?

A: Which of the following is not permitted as a cost of inventory? Answer - b) Storage costs

Q: Which of the following methods of inventory control will be used in case of a business whose…

A: Inventory control is a process of managing stock at the warehouse. It involves the optimization of…

Q: Damaged and obsolete goods that can be sold: Multiple Choice Are never counted as inventory. Are…

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

Q: Which of the following is the correct computation for the cost of goods available for sale? a.Net…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: Which one of the following is not a disadvantage of the specific identification method of inventory…

A: Under specific identification methods of inventory, specific inventory movement is measured. So it…

Q: Which of the following statements about merchandisingactivities is true? (More than one answer may…

A: Merchandising activities means activities of purchase and sale of goods that are ready for sale.…

Q: Why would a company choose to use an inventory costing method that estimates the cost of the goods…

A: In this question, we  explain that why would a company choose to use an inventory costing method…

Q: 11. What is the effect on cost of goods sold, gross profit, and net income if ending mer- chandise…

A: Error in inventory recording can be cancelled or we can say nullified within two consecutive…

Q: Which of the following accounts is not included in inventory? a. Raw material b. Team c. Finished…

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

Q: Under the perpetual inventory system, the business does not maintain records that show the running…

A: Solution: Under perpetual inventory system, inventory record is updated with every purchase and sale…

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: 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: ic inventory system wants to remove beginning estimated returns inventory, which of the following…

A: The right answer is option a.Estimated Returns Inventory

Q: The gross profit method of estimating inventory would NOT be useful when a. a periodic system is…

A:

Q: 2. When Inventory is sold, how is the cost of goods sold account affected? Briefly explain

A: Inventory is an asset which is recorded in the balance sheet . It is the merchandise owned by the…

Q: 48)The situation that requires a departure from the cost basis of accounting to the lower-of-…

A: Whenever there is a decrease in the value of inventory than in such a case inventory is valued in…

Q: The failure to record a purchase of merchandise on account even though the goods are properly…

A: Error of Omission: It is an  error where  no entry  is being recorded even though  transactions  are…

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: 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 statement is FALSE for Merchandise inventory of the Business? a. It is a…

A: Merchandise inventory is classified as a current asset on the balance sheet. Assets normally have a…

Q: Rustic Company has recognized an impairment loss on the value of inventory. If the inventory's value…

A: there is difference in the requirement of and recording of inventory as per ifrs and US GAAP . gaap…

Q: Where there is evidence that the utility of inventory goods, as part of their disposal in the…

A:

Q: Which of the following statements about the valuation of the inventory is correct, according to PAS…

A: Philippine Accounting Standards (PAS) 2 Inventories guides how to record or value inventories in the…

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: The factor that determines whether goods should be included in a physical count of inventory is…

A: Physical count helps in tracking the inventory and efficiency of management control.

Q: Why does reporting income under generally accepted accounting principles “reward building inventory…

A: Generally Accepted Accounting Principles: The Generally Accepted Accounting Principles are a group…

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. What is the effect on net income if a company fails to record a purchase in transit (FOB shipping…

A: Net income refers to the income which is calculated by deducting cost of goods sold, expenses,…

Q: he amount of any write down of inventory to net realizable value and all losses of inventory shall…

A: The international accounting standard 2 (IAS 2) contains the rules related to inventories.

Q: is it true that the inventory is a liability on its balance sheet?

A: Inventory is the array of finished goods by the company which the company aims to sell and earn a…

Q: Which of the following statements is true for a company that uses a periodic inventory system?…

A: Only inventory account is used for all the inventory transactions in the perpetual inventory system.…