Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company implements the following policy regarding inventory in transit: Goods purchased are included in inventory records, while goods sold are not included in inventory

A company implements the following policy regarding inventory in transit: Goods purchased are included in inventory records, while goods sold are not included in inventory records. Management feels this policy is reasonable because it assigns inventory in transit to the party that initiated the transactions. Which of the following concepts is management not considering in implementing this policy?

Multiple Choice

  • The likelihood that inventory purchased or sold will be returned.

    Incorrect
  • The quantity of the inventory involved in the transaction.

  • The party who has title to the inventory while in transit.

  • The materiality of shipping costs.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2021

Authors: Bernard J. Bieg, Judith A. Toland

31st Edition

0357358287, 9780357358283

More Books

Students also viewed these Accounting questions

Question

Explain the basic objectives in the settlement of claims.

Answered: 1 week ago

Question

Describe a department managers role in the union organizing process

Answered: 1 week ago