Inventory

Q.

Which goods are known as scarce goods?

Q.

The difference between opening and closing inventories of finished goods, work-in-progress and stock-in-trade shall be classified as ___

1. Stock in trade

2. Changes in inventories

3. Cost of materials consumed

4. All of these

Q.

The Service Which Helps in Removing Hindrance of Time Is:

Q. A proforma invoice is sent by ___________.

1. Consignee to consignor
2. Consignee to debtors
3. Debtors to consignee
4. Consignor to consignee

Q. The principle types of inventories are raw materials, ___________ and finished goods.

1. Processed materials
2. Work-in-progress
3. Stored goods
4. Goods for dispatch

Q.

Why would a company want to estimate its inventory?

1. The company might physically count inventory only once a year, yet they might need to produce financial statements on a monthly basis

2. Inventory is lost in a fire, and the claim for insurance requires the inventory amount lost

3. As a test of the accuracy of an actual physical inventory count

4. All of these

Q. Which of these is NOT a feature of Consignment?

1. There is principal and agent relationship between the Consignor and Consignee
2. Consignor presents proforma invoice to the Consignee
3. The property in the goods passes on to the Consignee after transfer of the goods
4. Consignor reimburses all the expenses to the Consignee

Q. For finished goods, we don't show purchases and changes in inventory separately.

1. False
2. True

Q.

Do we show separately purchases and changes in inventory separately for raw materials?

1. None of these

2. No

3. Can't say

4. Yes

Q.

___ refers to goods purchased normally with the intention to resell or trade in.

1. Work in progress

2. All of these

3. Stock in trade

4. Raw materials consumed

Q.

For _________________, we show purchases and changes in inventory separately.

1. none of these

2. raw materials

3. work in progress

4. finished goods

Q. Specific price method of valuing material issue is used when ___________.

1. None of the Above
2. Materials are purchased for specific job or work order
3. Materials are subject to natural wastage
4. Prices Fluctuate

Q. The difference between opening and closing inventories shall be classified as changes in inventories.

1. False
2. True

Q. Which of the following statements is CORRECT in respect of goods sent to consignee?

1. The relationship between consignor and consignee is that of a trader and a customer
2. Consignee is entitled to return the goods if remaining unsold
3. Consignor and consignee enter into an agreement for sale of goods
4. The relationship between consignor and consignee is not that of principal and an agent

Q. In a business, raw materials, components, work in progress and finished goods are jointly regarded as

1. Inventory
2. Capital stock
3. Net worth
4. Investment

Q. We show separately purchases of stock-in-trade and changes in inventory for raw materials in the statement of profit and loss.

1. False
2. True