ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 28

26. How is a significant amount of consignment inventory
reported in the balance sheet?
a. The inventory is reported separately on the consignor's balance
sheet.
b. The inventory is combined with other inventory on the consignor's
balance sheet.
c. The inventory is reported separately on the consignee's balance
sheet.
d. The inventory is combined with other inventory on the consignee's
balance sheet.
27. Where should goods in transit that were recently purchased
f.o.b. destination be included on the balance sheet?
a. Accounts payable.
b. Inventory.
c. Equipment.
d. Not on the balance sheet.
28. If a company uses the periodic inventory system, what is the
impact on net income of including goods in transit f.o.b. shipping
point in purchases, but not ending inventory?
a. Overstate net income.
b. Understate net income.
c. No effect on net income.