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Question 70

Matching

Premises:
Goods acquired for resale.
Goods manufactured for resale.
Maintains an up-to-date cost of goods sold account balance.
Establishes ending inventory by performing a physical count.
Legal title to the inventory transfers to the buyer when the goods leave the seller's place of business.
Legal title to the inventory passes to the buyer when the goods reach the buyer's place of business.
The company that relinquishes possession to the goods so that they may be sold, while retaining ownership of the goods until they are sold.
The company that takes possession of the goods, but not legal title, in order to sell them.
Records the discount only if it is taken.
Records the discount only if it is not taken.
Responses:
consignee
consignor
finished goods inventory
FOB destination
FOB shipping point
gross price method
merchandise inventory
net price method
periodic inventory system
perpetual inventory system

Correct Answer:

Goods acquired for resale.
Goods manufactured for resale.
Maintains an up-to-date cost of goods sold account balance.
Establishes ending inventory by performing a physical count.
Legal title to the inventory transfers to the buyer when the goods leave the seller's place of business.
Legal title to the inventory passes to the buyer when the goods reach the buyer's place of business.
The company that relinquishes possession to the goods so that they may be sold, while retaining ownership of the goods until they are sold.
The company that takes possession of the goods, but not legal title, in order to sell them.
Records the discount only if it is taken.
Records the discount only if it is not taken.
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