When the goods are sent on consignment, the goods are recorded in the books of a. Business have possession of the goods as closing stock b. Nobody till the goods are sold c. Business who have sent the goods, as closing stock d. Business as a sale of goods

When the goods are sent on consignment, the goods are recorded in the books of a. Business have possession of the goods as closing stock b. Nobody till the goods are sold c. Business who have sent the goods, as closing stock d. Business as a sale of goods

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 17MC: Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping....

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23- When the goods are sent on consignment, the goods are recorded in the books of a. Business as a sale of goods b. Nobody till the goods are sold c. Business who have sent the goods, as closing stock d. Business have possession of the goods as closing stock
Question: 1. What is the correct source documents for direct deposit by customer of business. 2. What is the correct source documents for owner of business takes goods from the business for his own use. reqiured: please answer this question by giving the correct source documents for this two questions.
Before paying an invoice for goods received on account, the controller or treasurershould ensure thata. the company is paying for the goods it actually received.b. the company is paying for the goods it ordered.c. the company has not already paid this invoice.d. all of the above.
In a sales transaction, which of the following is an assertion of existence or occurrence:a. All sales transactions that occur are recordedb. Sales transactions have been recorded at the correct periodc. The sales transaction has been recorded according to the amount that has been sent and the correct amount has been invoicedd. Sales transactions that have been recorded are valid sales to customers
Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping. B. The seller owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.
Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.
Goods in transit are recorded as closing inventory of the Buyer when a. The goods are purchased on FOB destination Port terms and the goods reaches buyers port b. The order for the goods are placed with the seller c. When the goods are dispatched to the buyer d. The goods are purchased on FOB Shipping Port terms and the goods have left the sellers place
FOB destination of a Merchandise Business means: a. Seller is not responsible for the goods b. Buyer is responsible for paying the freight charges. c. Seller is responsible for paying the freight charges. d. Goods are placed free on board to the buyer's place of business.
A receiving report is filled out when we receive: An inventory shipment from a vendor. Items that a customer is authorized to return from a previous sale. A payment on a customer's account. a and b only. Answer is not the First option!
With consignment sales, at the time of the sale to a third party: the consignee only records revenue the consignor only records revenue the customer records the sale the consignee and the consignor record revenue
Which one of the following statements is false? a. FOB shipping point means the buyer has legal title to the goods while they are in-transit b. FOB shipping point means the buyer has legal title to the goods when they are shipped c. FOB destination means the seller has legal title to the goods until they reach the buyer's place business d. FOB shipping means the buyer acquires legal title to the goods when they reachg the buyer's place of business
When should revenue from the sale of merchandise normally be recognized? (Assume the company reports using ASPE.) a.When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. b.When the customer pays for the merchandise. c.Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. d.When the customer takes possession of the merchandise.