ACC 304 All Assignments ACC 304 All Assignments | Page 76

29. If a company uses the periodic inventory system, what is the
impact on the current ratio of including goods in transit f.o.b. shipping
point in purchases, but not ending inventory?
a. Overstate the current ratio.
b. Understate the current ratio.
c. No effect on the current ratio.
d. Not sufficient information to determine effect on the current ratio.
30.
What is consigned inventory?
a. Goods that are shipped, but title transfers to the receiver.
b. Goods that are sold, but payment is not required until the goods are
sold.