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?

Recognize the key factors influencing transportation mode selection.

Understand cost-related aspects of supply chain management, including cost reduction strategies and inventory costs.

Understanding the concept of operant conditioning and its applications.

Differentiating between types of reinforcements (positive, negative) and punishments (positive, negative).

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Definitions:

Business-Specific Risk

Variation in the return on a stock investment caused by things that affect specific businesses or industries.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification, often related to economic, political, or social factors.

Market Risk

Variation on the return on a stock investment caused by things that tend to affect all stocks.

Stand-Alone Risk

The risk associated with investing in a stock that’s held by itself, outside of a portfolio. Stand-alone risk depends on the volatility of a stock’s own return rather than on the effect its inclusion has on the volatility of the return of a portfolio.