1.

Goods in transit are included in inventory

Multiple Choice

• When ownership has passed to the purchaser

• When the supplier pays the freight charges

• When the purchaser is responsible for paying freight charges and when ownership has passed to the purchaser

• When the purchaser is responsible for paying freight charges

• At any time in transit

• 2.

  Merchandise inventory includes

  Multiple Choice

• All goods owned by a company and held for sale

• Goods in transit

• Goods on consignment

• Damaged goods

• All of the above

• 3.

  The pricing of an inventory where the purchase invoice of each item in the ending inventory is identified and used to determine the cost assigned to the inventory is

  Multiple Choice

• Average costing method

• First-in, first-out method

• Retail method

• Specific identification method

• Weighted-average inventory method

• 4.

  During a period of steadily rising prices, which inventory cost flow assumption results in reporting the highest inventory value?

  Multiple Choice

• Any of the above

• Moving weighted average

• Average cost

• FIFO

• Specific identification