Reference no: EM132969904

Problem 1: What is a consigned inventory?

a) Goods that are shipped and title transfer to the consignee.

b) Goods that are sold but payment is not required until the goods are sold.

c) Goods that are shipped but title remains with the consignor.

d) Goods that have been segregated for shipment to a customer.

Problem 2: Which of the following inventory estimating procedure is allowed even for annual reporting purposes?

          GPM            RIM

a) Allowed         Allowed

b) Not Allowed    Allowed

c) Allowed        Not Allowed

d) Not Allowed      Not Allowed

Problem 2: Inventories are assets (choose the incorrect one):

a) Held for sale in the ordinary course of business.

b) In the process of production for sale.

c) In the form of materials or supplies to be consumed in the production process or in the rendering of services.

d) Held for use in the production or supply of goods and services.