Which of the Following Should Be Included in the Physical

question 164

Multiple Choice

Which of the following should be included in the physical inventory of a company?

• A) Goods held on consignment from another company.
• B) Goods in transit to another company shipped FOB shipping point.
• C) Goods in transit from another company shipped FOB shipping point.
• D) Both goods in transit to and from another company shipped FOB shipping point.

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Definitions:

Understatement

A representation of financial position or results of operations that is less than what is true, factual, or proper, often leading to a misleading view of a company's financial health.

Subsidiary Ledger

A detailed ledger containing transaction information for individual accounts, which supports and provides details for a summary account in the general ledger.

Customer Accounts

Accounts maintained by businesses to record individual transactions of their customers over a period of time, tracking purchases, payments, and balances.