The Asset of Inventory - Chapter 7

Name all the accounts that affect the movement of Inventory.

Give two synonyms for goods

Is inventory an asset, liabiity or capital?

Which is the increase side of an inventory account?

Our business sells fans. We bought $500 worth of fans from P. Carley paying by cash. Show which account is debited and which is credited.

You are in the business of selling furniture. You bought furniture for use by the business paying by cash. Which account is debited and which is credited?

When goods are returned by a customer, which returns account is affected?

• Returns inwards

• Returns Outwards

• Purchases

• Sales

We bought $400 worth of goods and returned $100 to our supplier. Which returns account is affected?

• Returns Inwards

• Purchases

• Sales

• Returns Outwards

In business what is the meaning of purchases?

For the practice activities given last week Tuesday, I did

• 7.1 only

• 7.1 and 7.2 only

• 7.1, 7.2, and 7.3X

• 7.1, 7.2, 7.3X and 7.4X