If You Received Inventory Without a Bill,once the Bill Has

question 23

Multiple Choice

If you received inventory without a bill,once the bill has arrived you could do all of the following,except:

• A)Enter the bill against the inventory already recorded
• B)Enter the inventory and then enter the bill separately
• C)Enter the bill and wait for the inventory to arrive
• D)Enter the inventory and bill at the same time

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Definitions:

FIFO Method

First In, First Out, an inventory valuation method that assumes that the first items placed into inventory are the first sold.

Ending Inventory

The total value of goods that remain unsold at the end of the accounting period.

Holding Gains

Profits resulting from the increase in value of an asset held over time, not realized until the asset is sold.

Merchandise Inventory

Merchandise Inventory consists of products that a company buys to resell at a profit. It is often one of the largest current assets for businesses that sell physical goods.