You are watching: Goods in transit which are shipped f.o.b. shipping point should be
| in the ending inventory of the current period will have actually noeffect top top net earnings of the next bookkeeping period. |
| that understates the ending inventory will cause net revenue forthe duration to be overstated. |
| that understates the ending inventory will reason assets to beunderstated. |
3.Wholesome Ltd. Has a job in inventory ratio of 50 and averageinventory of $320,000. What is its cost of items sold?
| cannot it is in determined |
| $16,000,000 |
| $2,191,780 |
| $2,336,000 |
4.the managers of Winning means Ltd. Obtain performance bonusesbased ~ above the company’s net income. I m sorry inventory cost formula arethey most likely to favour in periods of decreasing prices?
| Average cost. |
| FIFO. |
| Need much more information come answer. |
| They would have no preference. |
5.
Which one of the following statements is true?
| Depreciation is a valuation concept; that is, us allocate coststo reflect the actual adjust in the value of the asset. |
| The adjusting entry for unearned profits results in anincrease come a legal responsibility account and a decrease come a revenueaccount. |
| Expiration of one month of an insurance plan paid in advance,initially taped by debiting Prepaid Insurance, results in anadjusting entry the reduces the company"s liabilities. |
| Adjusting entries never influence cash. |
| None of the over is true. |
6.Under a perpetual inventory device
| there is no need for a year-end physics count. |
| the account acquisition Returns and also Allowances is credited whengoods are returned to vendors. |
| increases in inventory resulting from purchases space debited toPurchases. |
| accounting documents continuously disclose the amount ofinventory. See more: Cubs Vs Nationals Live Stream, Mlb Tv Guide: How To Watch Nationals Vs |
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