Asked by Kolton Alvey on Jul 27, 2024
Verified
Stock take discrepancies between a count sheet and recorded quantities in the ledger may arise due to which of the following: I. Stock in transit purchased under FOB destination terms
II. Consignment stock included in the physical count by the consignee
III. Sales returns not being processed into the ledger
IV. Theft of stock during the year
A) I, II and III
B) I, III and IV
C) II, III and IV
D) I, II and IV
FOB Destination
A shipping term where the seller bears the shipping costs and retains ownership of the goods until they are delivered and accepted by the purchaser.
Consignment Stock
Inventory that is in the possession of the customer but still legally owned by the supplier until sold.
Stock Discrepancies
Differences between the amount of inventory recorded and the actual inventory present, often resulting from errors or theft.
- Determine the correct approach for handling inventory discrepancies and losses in accounting.
Verified Answer
Learning Objectives
- Determine the correct approach for handling inventory discrepancies and losses in accounting.
Related questions
An Overstatement of Ending Inventory Leads to an Overstatement of ...
The Ending Inventory for This Year Is Overstated ...
When Ending Inventory Is Understated ...
In an Actual Business,which of the Following Inventory Accounting Issues ...
The Accountant for Sue Company Made the Following Errors Related \( ...