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

In relation to inventory, what are the two primary functions that management must be concerned with?

Control and accounting

Purchasing and selling

Ordering and shipping

Financing and investing

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Verified step by step guidance

Understand the context of inventory management in Financial Accounting. Inventory refers to goods available for sale or raw materials used in production, and management must ensure proper handling and tracking.

Identify the two primary functions related to inventory management. These functions typically involve ensuring accurate records (accounting) and maintaining oversight to prevent loss or inefficiency (control).

Evaluate the options provided in the problem: 'Control and accounting,' 'Purchasing and selling,' 'Ordering and shipping,' and 'Financing and investing.' Consider which pair aligns most closely with the primary responsibilities of inventory management.

Recognize that 'Control and accounting' are essential for inventory management because control ensures proper handling and safeguarding of inventory, while accounting ensures accurate financial reporting and valuation.

Conclude that the other options, such as 'Purchasing and selling,' 'Ordering and shipping,' and 'Financing and investing,' are secondary or unrelated to the core functions of inventory management.