WorksheetsInventories
Total questions: 11
Worksheet time: 6mins
Inventory is a/an _______________.
current asset
non-current asset
current liability
expense
What are the characteristics of trade discount?
given at the point of buying/selling
given at the point of payment
encourage early/prompt payment
encourage bulk purchases
recorded as discount received/allowed
What are the characteristics of cash discount?
given at the point of buying/selling
given at the point of payment
encourage early/prompt payment
encourage bulk purchases
recorded as discount received/allowed
Ownership of the goods passes to the buyer when the public carrier accepts the goods from the seller.
FOB Shipping Point
FOB Destination
It is a freight term, which means the carrier will collect the cost of transportation the goods to the buyer.
Freight collect
Freight prepaid
Which is excluded from the cost of inventories?
Import Duties
Administration Overheads
It is a shipping term where the risk of loss is transferred from seller to the buyer at a named port alongside a vessel designated by the buyer.
FAS
CIF
In a manufacturing business, inventory that is ready for sale is called
raw materials inventory.
work in process inventory.
finished goods inventory.
store supplies inventory.
Beginning inventory plus the cost of goods purchased equals
cost of goods sold.
cost of goods available for sale.
net purchases.
total goods purchased.
Cost of goods sold is computed from the following equation:
beginning inventory – cost of goods purchased + ending inventory.
sales – cost of goods purchased + beginning inventory – ending inventory.
sales + gross profit – ending inventory + beginning inventory.
beginning inventory + cost of goods purchased – ending inventory.
Goods out on consignment should be included in the inventory of the consignor.
TRUE
FALSE
