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

5. Inventory

Physical Inventory Count, Ownership of Goods, and Consigned Goods

Financial Accounting

5. Inventory

Physical Inventory Count, Ownership of Goods, and Consigned Goods

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Multiple Choice

Which of the following is typically included as part of a detailed inventory list during a physical inventory count?

The total sales revenue for the period

The list of all company employees

The quantity and description of each inventory item on hand

The depreciation schedule for fixed assets

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Verified step by step guidance

Understand the purpose of a physical inventory count: It is conducted to verify the actual quantity and condition of inventory items on hand, ensuring accuracy in financial records.

Identify the key elements typically included in a detailed inventory list: The list should contain the quantity and description of each inventory item on hand, as this information is crucial for inventory valuation and financial reporting.

Eliminate irrelevant options: The total sales revenue for the period, the list of all company employees, and the depreciation schedule for fixed assets are unrelated to the physical inventory count and should not be included in the inventory list.

Focus on the correct option: The quantity and description of each inventory item on hand are essential for tracking inventory levels and reconciling physical counts with accounting records.

Recognize the importance of accurate inventory records: Proper documentation ensures compliance with accounting standards and helps prevent discrepancies between physical inventory and recorded amounts.