Questions from College Accounting

Q: Explain why goods in transit (F.O.B.

Explain why goods in transit (F.O.B. shipping point) to buyer and goods issued on consignment are added to inventory valuations.

Q: Kevin Hoffaman works as a teller in Victory Bank. Yesterday,

Kevin Hoffaman works as a teller in Victory Bank. Yesterday, he looked up confidential information about promissory notes concerning several friends. Kevin told his girlfriend all about the confidenti...

Q: When ending inventory is understated, what effect will it have on

When ending inventory is understated, what effect will it have on cost of goods sold and net income?

Q: Why would a company use the retail method to determine the value

Why would a company use the retail method to determine the value of the ending inventory? Why would it use the gross profit method?

Q: Lyon Co. has used a perpetual inventory system for 6 months

Lyon Co. has used a perpetual inventory system for 6 months. The president of the company issued a memo stating that the new computer system failed to deliver acceptable standards in servicing the cus...

Q: What are the two key accounts in the perpetual inventory system?

What are the two key accounts in the perpetual inventory system?

Q: In the perpetual system, what account is debited to record the

In the perpetual system, what account is debited to record the cost of merchandise purchased?

Q: Why could the balance of the controlling account, Accounts Payable,

Why could the balance of the controlling account, Accounts Payable, equal the sum of the accounts payable subsidiary ledger during the month?

Q: Why are there two entries required to record each sale in the

Why are there two entries required to record each sale in the perpetual inventory system?

Q: Explain the relationship between the Merchandise Inventory account and the subsidiary inventory

Explain the relationship between the Merchandise Inventory account and the subsidiary inventory ledger.