POA: Inventory

Inventory

purchase of goods meant for resale

Warehouse of Amazon

Total Cost of Inventory Purchase

• Cost of inventory less trade discount

• Add Freight/Transport cost

• Add Import duties and taxes

• Add Insurance on shipping

Open Ended

Which accounting concepts are relevant for Inventory?

Multiple Select

How do we value inventory in the financial statement?

• Last In, First Out

• First In, First Out

• Weighted average

Multiple Choice

What is the double entry when business purchases goods on credit?

• Dr Inventory Cr Cash at bank

• Dr Goods Cr Trade Payable

• Dr Inventory Cr Trade Payable

Multiple Select

Which accounts are affected when goods are sold on credit?

• Inventory

• Cash at bank

• Trade receivable

• Cost of sales

• Sales revenue

Open Ended

My 3 learning points on inventory are ...

Multiple Select

What to do when inventory is stolen, damaged, lost or obsolete?

• Dr Stolen goods Cr Inventory

• Dr Impairment Loss on Inventory Cr Inventory

• Dr Inventory Cr Inventory Loss

Inventory Account

• Balance b/d

• Cash at bank/Cash in hand/Trade Payable

• Cost of Sales

• Impairment loss on inventory

• Balance b/d