Which of the following statement is False for Perpetual inventory system of a Merchandise Business? a. the business knows easily how many items of stock were sold and how many items of stock are left b. Record of stock movement will be updated on a daily basis c. Inventory will be recorded after every purchase of goods by the business d. Value of closing inventory cannot be determined by the business

Q: Under a perpetual inventory system a. accounting records continuously disclose the amount of…

A: Under the perpetual inventory system, purchases and sales are continuously updated to the inventory.

Q: A retail company recently completed a physical count of ending merchandise inventory to use in…

A: In the given situation, the FOB shipping point inventory was correctly recorded in purchases and…

Q: Mr. Mohammed use perpetual inventory system makes the following journal entry in his business Debit…

A: Merchadise inventory is debited and Accounts payable is credited where  inventory is purchased on…

Q: Alpha company is a trading company that purchases and sales fruits and vegetables.  During the year…

A: Anomaly means some wrong thing has been done. We need to find out the anomaly and suggest the best…

Q: What is the main source of income for a buying and selling company? 2. Between the operational cycle…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which of the following is a characteristic of a periodic inventory system? a. The system reports how…

A:

Q: Match the accounting terminology to the definitions. AClick the icon to view the definitions.) More…

A: Definition: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system…

Q: 46. When a company uses the periodic inventory system in accounting for its merchandise inventory,…

A: Inventory is one of the important current asset of the business. It includes inventory of raw…

Q: The two basic approaches to accounting for inventory and thecost of goods sold are the perpetual…

A: Introduction: Perpetual inventory system: Under this system of inventory maintenance, the…

Q: A branch office allowed to make sales, carry inventory for resale to customers, and incur normal…

A: branch office allowed to make sales, carry inventory for resale to customers,and incur normal…

Q: Concord Inc. is a retailer using a perpetual inventory system. All sales returns from customers…

A: As per the definition of perpetual inventory system , inventory counting is done continuously and…

Q: All sales and purchases for the year at Ross Corporation are credit transactions. Ross uses a…

A:

Q: Alpha company is a trading company that purchases and sales fruits and vegetables.  During the year…

A: When the manufacturer supplies goods to a customer and is responsible for the freight charges, such…

Q: A retailer’s physical count of inventory was higher than that shown by the perpetual records.Which…

A: When the physical count of inventory is higher than the accounting records, the reasons would be…

Q: AZO Co. currently uses a periodic inventory system. Mr. Sohaim, the owner, is considering the…

A: Periodic Inventory System:-It is a system in which inventory is valued at a specific period of time.…

Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…

A: Under perpetual inventory system, inventory account is used instead of purchases account. For every…

Q: Under perpetual inventory system: Timely information is provided to the managers which helps in…

A: For recording the inventory in books of accounts , we have two method Perpetual inventory system…

Q: Describe the audit opinion that should be given and explain why. a) The client (a large department…

A: Audit Opinion A report made by auditor which states whether the financial statements are in…

Q: Presented below is a list of items that may or may not be reported as inventory in a company's…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

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: A business buys £1,000 of inventory on credit. What is the dual effect of this transaction?…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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 the following statements is true about periodic inventory system? Income statement and…

A: Periodic inventory system: Periodic inventory is a system of inventory in which updates are made on…

Q: If an accounting manager asks you to delay recording an invoice for the purchase of merchandise…

A: Income statement is prepared by the business organizations so as to know how much amount of gross…

Q: Delta Company buys merchandise on account from Larks Company for $580. Delta sells the goods to…

A: Assets = Liabilities + Stockholders' Equity

Q: A company using a perpetual inventory system that returns goods previously purchased on credit would…

A: A company using a perpetual inventory system that returns goods previously purchased on credit would…

Q: The home office uses a loading account. If the loading account is used in its customary fashion, it…

A: When goods are shipped to branch at invoice price ( ie cost price + markup), the head office will…

Q: Computers's Merchandise Inventory account at​ year-end is showing a balance of $43,000. The…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: The inventory turnover ratio: Multiple Choice Is used to measure solvency. Reveals how many days a…

A: Inventory turnover is a financial statistic that shows how many times a company's inventory is sold…

Q: Under the perpetual system of inventory, the Inventory account is debited at each purchase and…

A: Perpetual Inventory System:-it is a system of inventory valuation where inventory gets calculate on…

Q: What is the expansion of LIFO in the context of valuing Merchandise Inventory of a Merchandise…

A: Introduction: LIFO and FIFO Are used for Inventory valuation. Apart from LIFO and FIFO another…

Q: Waterway Inc. is a retailer operating in British Columbia. Waterway uses the perpetual inventory…

A: Calculation under LIFO Date   Units Amount Amount           Jan 1 Opening  100 21 2,100…

Q: Interpretation of the inventory holding period depends on the industry in which a business operates.…

A: More the inventory holding more the carrying and holding cost, hence business should encircle that…

Q: In a retail business that uses a perpetual inventory system, scanning a bar code does not: O…

A: In a retail business that uses a perpetual inventory system, scanning a bar code does not: Option…

Q: Alpha company is a trading company that purchases and sales fruits and vegetables.  During the year…

A: Double entry system of accounting is a concept where sum of total assets is equal to sum of total…

Q: Tempo Ltd. is a retailer operating in Dartmouth, Nova Scotia. Tempo uses the perpetual inventory…

A: The cost of goods sold is calculated by adding the beginning inventory and purchases to obtain the…

Q: Crane Inc. is a retailer operating in British Columbia. Crane uses the perpetual inventory system.…

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Q: Concord Inc. is a retailer using a perpetual inventory system. All sales returns from customers…

A: As we know that perpetual inventory system is a sustem in which inventory is country continuously…

Q: The retail inventory method requires a company to value its inventory on the balance sheet at retail…

A: The retail inventory method is an accounting process wherein the estimated or approximate value of…

Q: What is the inventory system called that discloses the amount of inventory on hand ONLY at the end…

A: The periodic inventory system is an inventory system that involves a periodic physical inventory…

Q: Crane Inc. is a retailer operating in British Columbia. Crane uses the perpetual inventory system.…

A: 1. Last-in, first-out (LIFO) cost flow assumption - Under LIFO Method, Inventory purchased last is…

Q: A retail business like Best Buy experiences some loss of inventory due to shoplifting, employee…

A: The inventory difference may occur due to theft, shrinkage, fire, process loss, etc

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.