Which of the following is false regarding a perpetualinventory system?a. Physical counts are never needed because records aremaintained on a transaction-by-transaction basis.b. The Inventory records are updated with each inventorypurchase, sale, or return transaction.c. Cost of Goods Sold is increased as sales are recorded.d. A perpetual inventory system can be used to detectshrinkage

Q: Which of the following is not an advantage of a perpetual inventory system? a. Assists in the…

A: The perpetual inventory method is a much better method in comparison to the periodic inventory…

Q: hich of the following statements relative to book (perpetual) inventory systems Is false? a. Use of…

A: Answer: Book inventory systems is defined as the inventory system which records inventory based on…

Q: Which of the following documents is not often used for inventory control? Vendor's invoice Sales…

A: Explanation to Question 1 Vendor invoice is a document that contain the amount owned by the…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: A major advantage of the retail inventory method is that it hides costs from competitors and…

A: Inventory is the current asset (goods or stock) which is held for the business for sale purpose.…

Q: No entry is made at the time of a sale to the Cost of Goods Sold Account or the Inventory Account…

A: There are two type of inventory system follows by the organizations i.e. Periodic inventory system…

Q: The elimination entry under the perpetual inventory system for intercompany sales  is a debit to…

A: SOLUTION- THE ELIMINATION ENTRY REMOVES IC SALES FROM THE CONS. UNIT (VENDOR) AND IC PURCHASE FROM…

Q: procedure reduces record-keeping, it also reduces control over inventory items. a. None of the…

A: There are two inventory methods which are followed by the entity which are, (1) Periodical inventory…

Q: Which of the following statement about the inventory write-down is not correct? * If the cost is…

A: As per International Accounting Standards IAS 2- “ Inventory includes assets that are held for the…

Q: If inventory errors are said to correct themselves, why are accounting users concerned when such…

A:

Q: A business using the perpetual inventory system, with its detailed subsidiary records, does not need…

A: The company can maintain its records of inventory on basis of two different systems: 1. Perpetual…

Q: 1. One of the assessments made in credit sales is unwillingness to pay, please explain what is meant…

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts…

Q: Which of the following is not an advantage of a perpetual inventory system? a. assits in the…

A: Under the perpetual inventory system, transaction related to the inventory is updated immediately as…

Q: Evaluate the following statement: “Without electronicpoint-of-sale terminals, it simply would not be…

A: Given statement is: Without electronic point-of-sale terminals, it simply would not be possible to…

Q: Ethics within inventory estimates and other creative accounting methods. Channel stuffing, swaps,…

A: Ethics implies the arrangement of rules that the association ought to follow. While in business,…

Q: Which of the following is a substantive test in relation to completeness? a. Inspect physical…

A: Inspect physical inventory, checking from inventory records to physical stock is an Audit assertion…

Q: What is the main distinction between perpetual and periodic inventory systems? Which type of system…

A: Explain the main distinction between perpetual inventory system and periodic inventory system and to…

Q: True or False

A: Given statement is: Under the periodic inventory system, the merchandise inventory account is not…

Q: The Habib Company did not include in their inventory count inventory that was sold to a customer…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: A list of errors is shown below: Show the effects of the errors on the indicated balance sheet and…

A:

Q: Under the perpetual inventory system, the business does not maintain records that show the running…

A: Solution: Under perpetual inventory system, inventory record is updated with every purchase and sale…

Q: Which one of the following statements is not true? a. A company using the periodic system does not…

A: At the end of the period, there is still a need to match the inventory value with the physical…

Q: What is the effect on net income if a company fails to record a purchase in transit (FOB shipping…

A: Accounting for inventory Inventory is all type of goods and products held by the seller to sell in…

Q: Perpetual inventory valuation system does not require....   a. physical count or measurement of…

A: The question is multiple choice question Required  Choose the Correct Option.

Q: Highlight the differences in the closing process when using the periodic inventory system rather…

A: Definition:

Q: In your own words, discuss the differences between a perpetual and periodic inventory system. Your…

A: Inventory is the current asset posted on the balance sheet of the company.

Q: With a perpetual inventory system inventory shortages through lost or stolen goods can be readily…

A: In Perpetual Inventory system the stock records  are kept up-to-date, by fast recording the…

Q: Which of the following is not a reason for the physical inventory count to differ from what…

A: Inventory is one of the important current asset of the business. This can be in form of raw…

Q: Which statements are true? 1. Perpetual system keeps only costs of inventories up-to-date, whereas…

A: Perpetual Inventory system :- It is method of inventory control in which every inflow and outflow of…

Q: Which of the following is an internal control weakness for a company whose inventory of supplies…

A: Internal control is a mechanism or procedure that the company implements so that the integrity of…

Q: Under a just-in-time inventory system, management strives to O None of the answers are correct.…

A: Answer is = Have inventory available when it is needed.

Q: 48. Which of the following statements is incorrect about perpetual inventory system? a. Inventory…

A: Inventory is the current asset for the company that is reported under the head current asset in the…

Q: Under a perpetual inventory system, acquisition of inventory is dented to the purchases account.…

A: Under the perpetual inventory system, Inventory transection is charged through the merchandise…

Q: Allowance Method in accounting for inventory write-down

A: Statement I is correct because Allowance method is required to be followed in accounting for…

Q: In the expenditure cycle, the control procedure of comparing inwards goods documents to vendor…

A: Solution : Correct answer are               -failure to take advantage of discounts for prompt…

Q: The following are several items that Golosow Company's controller has questioned regarding their…

A: Inventory refers to the goods that are remaining unsold at the end of the accounting period. To…

Q: A serious exposure for an organization that is connnected with the revenue cycle is the loss of…

A: In this question we asked about a serious exposure for an organization that is connnected with the…

Q: What can be the effect of inventory errors on the financial reports? How can these errors be…

A: Inventory is the detailed list of items that are present on hand. It constitute of all the finished…

Q: 3. Indicate the effect of the following errors on gross profit and cost of goods sold (COGS), i.e.,…

A: Cost of goods sold (COGS)- The cost incurred on the goods sold during the period is referred to as…

Q: Explain Potential Misstatements- Inventory/ Cost of Goods Sold and the description of misstatements…

A: Internal control is a procedure for insuring that an organization's objectives in operational…