Inventories - INTACC

    avatar
    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
    See similar decks