Reference no: EM132790115

Problem 1: Which of the following should not be included in the physical inventory of a company?

a) Goods held on consignment from another company

b) Goods shipped on consignment to another company.

c) Goods in transit from another company shipped FOB shipping point.

d) None of the above.

Problem 2: Accounts and notes receivable are reported in the current assets section of the balance sheet at:

a) cash (net) realizable value

b) net book value

c) lower-of-cost-or-market value

d) invoice cost

Problem 3: The purchase of supplies on account should result in:

a) a debit to Supplies Expense and a credit to Cash.

b) a debit to Supplies Expense and a credit to Accounts Payable.

c) a debit to Supplies and a credit to Accounts Payable.

d) a debit to Supplies and a credit to Accounts Receivable.