Chap 7 TRUE/FALSE
Cost of goods sold = Beginning inventory + Purchases - Ending inventory
TRUE
Ending inventory = Beginning inventory + Purchases - Cost of goods sold
TRUE
Inventory is reported on the balance sheet as a current asset
TRUE
The cost assigned to cost of goods sold and to inventory under the FIFO method will be the same whether the perpetual or the periodic inventory system is used
TRUE
The primary goals of inventory are to maintain a sufficient quantity of inventory to meet customer's needs, ensure inventory quality meets customer's expectations and company standards, and minimize the cost of acquiring and carrying inventory
TRUE
When a company sells goods, it removes their cost from the inventory account the cost on the income statement Cost of Goods Sold
TRUE
An overstatement of ending inventory will cause an overstatement of assets and an understatement of stockholders equity on the balance sheet
FALSE
Consignment inventory is reported on the balance sheet of the company holding the inventory
FALSE
Goods placed in inventory are initially recorded at market value
FALSE
If inventory is sold with terms of FOB shipping point, the goods belong to the seller while in transit
FALSE