1 Explain the Effect of the Following on the Financial

question 69

Essay

1. Explain the effect of the following on the financial statements:
Goods held on consignment were included in the ending inventory count.
Goods purchased FOB shipping point were in transit on the last day of the year. The goods were not counted as part of ending inventory.
Goods sold FOB shipping point were in transit on the last day of the year. These goods were not counted as part of ending inventory.
2. What happens if inventory errors are not found and corrected?

Identify the types of contracts and transactions to which the Sale of Goods Act applies.

Distinguish between goods and services under the Sale of Goods Act.

Recognize the implications of the Act for consumer protection.

Analyze the conditions and warranties implied by the Sale of Goods Act.

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Definitions:

Owners

Individuals or entities that hold the legal right or title to property, possessions, or an entity.

Industry

A particular form or branch of economic or commercial activity.

Corporate Debt Instruments

Financial securities issued by corporations to borrow money, such as bonds and debentures.

Similarities

The characteristics or qualities that make items or scenarios alike.