Inventories - INTACC

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Created by
pau

Cards (48)

  • Goods displayed in the store (Include or Exclude)
    Answer: Include
  • Goods stocked in the warehouse, not covered by any sales contract (Include or Exclude)
    Answer: Include
  • Goods purchased, in transit, shipped FOB seller (Include or Exclude)
    Answer: Include
  • Goods purchased, in transit, shipped FOB destination (Include or Exclude)
    Answer: Exclude
  • Freight cost on goods received, goods are still unsold (Include or Exclude)
    Answer: Include
  • Goods held on consignment (Include or Exclude)
    Answer: Exclude
  • Goods out on consignment (Include or Exclude)
    Answer: Include
  • Goods out to customers on approval (Include or Exclude)
    Answer: Include
  • Goods in the hands of traveling salesmen (Include or Exclude)
    Answer: Include
  • Goods sold with a buyback arrangement for the full sellingprice and other costs incurred by the buyer (Include or Exclude)
    Answer: Include
  • Unused factory supplies and indirect materials (Include or Exclude)
    Answer: Include
  • Goods which require additional processing (Include or Exclude)
    Answer: Include
  • Direct materials stocked in the warehouse (Include or Exclude)
    Answer: Include
  • Storage costs of goods completed (Include or Exclude)
    Answer: Exclude
  • Insurance premiums paid on stocked goods (Include or Exclude)
    Answer: Exclude
  • Goods completed, manufactured to customer’s specification,awaiting instruction for delivery by the customer (Include or Exclude)
    Answer: Exclude
  • Freight paid on goods sold (Include or Exclude)
    Answer: Exclude
  • Unused supplies for administrative purposes (Include or Exclude)
    Answer: Exclude
  • Unused store supplies (Include or Exclude)
    Answer: Exclude
  • Goods sold with a right to return granted to buyers, amount of return is reasonably predictable. (Include or Exclude)
    Answer: Exclude
  • Goods sold under FAS, at the port designated by the buyer (Include or Exclude)
    Answer: Exclude
  • Goods at the port, purchased CIF (Include or Exclude)
    Answer: Include
  • Goods In Transit
    • Legal title is not transferred until the goods are delivered to the buyer's destination.
    Answer: FOB Destination
  • Goods In Transit
    • Legal title to the goods passes with the loading of goods at the point of shipment.
    Answer: FOB Shipping Point
  • Freight charge on the goods shipped is not yet paid. Common carrier shall collect the same from the buyer.
    Answer: Freight Collect
  • Means that the freight charge on the goods shipped is already paid by the seller.
    Answer: Freight Prepaid
    • The seller must bear all expenses and risk involved in delivering the goods up to the dock next or alongside the vessel.
    • Risk and reward of the goods is still on the SELLER until the goods are delivered up to the dock or the vessel.
    Answer: FAS or Free Alongside
  • The buyer agrees to pay in lump sum of the cost of the goods, insurance cost and freight charge.
    Answer: CIF or Cost, Insurance, and Freight
    • The seller bears all expenses and risk of loss until the goods are unloaded.
    • Risk and reward is still on the SELLER hanggang sa maibaba sa pier ang goods.
    Answer: EX-ship
    • A method of marketing goods in which the owner (consignor) transfers physical possession of goods to the agent (consignee).
    Answer: Consigned Goods
    • The goods must be included in the inventory of the ___, at the COST PLUS THE HANDLING AND SHIPPING COST INCURRED
    Answer: Consignor
    • Special goods manufactured according to the customer specifications, should be considered sold when completed.
    Answer: Segregate Goods
    • If goods are SOLD and COMPLETED, it will be REMOVED from the records of inventory of the ___ (buyer or seller)?
    Answer: Seller
    • The control over the goods has already passed to the buyer. The seller anticipates completion of contract and passing of the title.
    Answer: Conditional Sales and Installment Sales
    • Once accepted by the buyer, ___ will remove the goods from their inventory records, and the control of goods will be transferred to ___.
    Answer: seller, buyer
    • The owner of goods sells the inventory to another party and agrees to repurchase the goods at specified price.
    Answer: Goods Sold with Buyback Agreement
    • ___ (Seller or Buyer) still has the control over the goods, so the goods are still part of their inventory.
    Answer: Seller
    • Buyers are given the right to rescind the purchase of goods for a reason specified in the sales contract.
    Answer: Goods Sold with Refund Offers
    • ___ (Seller or Buyer) has the right to receive the goods, therefore it will be part of their inventory records.
    Answer: Buyer
    • Also known as Physical System
    • A company does not maintain continuous record of the physical quantities or costs on inventory on hand.
    • Physical inventory is taken at the end of the year
    Answer: Periodic System
    • Maintains a continuous record of the movement or the items in its inventory
    • Essential when management wants to maintain effective planning and control over inventory
    • No adjusting entry is needed to set up ending inventory
    • Physical count is made at least once a year to confirm the inventory balance per books
    • Variation between the physical count and ledger may result from erorrs in recording, shrinkage, waste, breakage, theft and other causes.
    Answer: Perpetual System
  • Principle Concerning Measurement of Inventory
    • Inventories shall be measured at ___
    Answer: LCNRV or Lower of Cost and Net Realizable Value
  • Principle Concerning Measurement of Inventory
    • Cost of inventories shall be determined by using either ___ method or ___ method.
    Answer: FIFO, Weighted Average
  • Principle Concerning Measurement of Inventory
    • PAS 2 prohibits the use of ___ costing
    Answer: LIFO
  • Principle Concerning Measurement of Inventory
    • Cost of inventories that are not ordinarily interchangeable and inventories that are segregated for specific projects shall be determined by using ___
    Answer: Specific Identification Method