question

Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the

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Inventory Ledger

question

Which document authorizes the purchase of the inventory from an approved vendor?

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The Purchase Order

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The primary objectives of control over inventory are

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Safe guarding inventory from damage and reporting inventory in the financial statements

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Taking a physical count of inventory

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Should be done near year end

question

Control of inventory should begin as soon as the inventory is received. Which of the following internal control steps is not done to meet this goal?

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Check the invoice with the person who specifically purchased the item

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question

All of the following are documents used for inventory control except

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A petty cash voucher

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question

Which document establishes an initial record of the receipt of the inventory?

answer

Receiving report

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question

Which of the following is not an example for safeguarding inventory?

answer

Returning inventory that is defective or broken

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question

Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items?

answer

Specific identification

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question

Ending inventory is made up of the oldest purchases when a company uses

answer

Last-in, first-out

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Inventories – Flashcards

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