Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

Which of the following is NOT a cost associated with inventory management?

Insurance on inventory

Depreciation expense on office equipment

Inventory shrinkage losses

Storage costs for inventory

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Verified step by step guidance

Understand the concept of inventory management costs: Inventory management costs are expenses directly related to storing, handling, and protecting inventory. These costs ensure the inventory is maintained in good condition and ready for sale or use.

Analyze each option provided: Review each cost listed in the problem and determine whether it is directly associated with inventory management. For example, insurance on inventory is a cost incurred to protect inventory from risks like theft or damage.

Evaluate depreciation expense on office equipment: Depreciation expense on office equipment is not directly related to inventory management. It is an accounting expense related to the wear and tear of office equipment, which is unrelated to storing or handling inventory.

Consider inventory shrinkage losses: Inventory shrinkage losses occur due to theft, damage, or errors in inventory records. These are directly associated with inventory management as they impact the value and quantity of inventory.

Assess storage costs for inventory: Storage costs are incurred to house inventory in warehouses or storage facilities. These are directly related to inventory management as they ensure inventory is stored securely and efficiently.