Question 3 In performing a stocktake care must be taken with goods in transit. Which of these statements is true? a. Stock on consignment is regarded as sold by the consignor. b. Stock on consignment is included in the stock of the consignor. c. Goods in transit should be included in both the purchasers and the sellers inventory. d. Stock on consignment is included in the stock of the consignee. Question 4 A physical stocktake is carried out: a. only under the periodic inventory system. b. only under the perpetual inventory system. c. under both the periodic and perpetual systems. d. under neither the periodic nor the perpetual systems. Question 5 Inventory is defined as goods held for resale in the ordinary course of business. Which of the following would not be included in inventory for any type of business? a. Land held for resale b. Cash at bank c. Work in process d. Computers Question 7 The cost of inventory purchase during the period is recorded in the purchase account. a. Periodic inventory system b. Purchase account system c. The inventory on hand system d. Perpetual inventory system Question 8 Purchases of merchandise are debited to inventory account and credited to accounts payable account. a. Periodic inventory system b. Purchase account system c. The inventory on hand system d. Perpetual inventory systems.