Question

Which of the following should not be included in the physical inventory of a company? Group of answer choices a) Goods held on consignment from another company b) All of the answer choices are correct. c) Goods shipped on consignment to another company d) None of these choices is correct. e) Goods in transit from another company shipped FOB shipping point.

Answer 1

Answer:

c) Goods shipped on consignment to another company

Explanation:

• A physical inventory is the goods that are in stock and involve the counting and weighing and otherwise measuring of the third parties to the counting of inventory that is consigned to them.

• Physical inventory is also called as a perpetual inventory where all the goods are counted along with the business stocks. It also checks that the goods are not being lost or stolen.