Ch 6 Review, Version 1

05:02 PM

1. Practice Question 1

When the terms of a sale are FOB destination, legal title to the goods passes to the buyer when the goods reach the

buyers place of business.

   True

   False

1. Practice Question 2

Merchandising firms usually classify their inventory into raw materials, work in process and finished goods.

   True

   False

1. Practice Question 3

When is a physical inventory usually taken?

   When goods are not being sold or received

   When a company has its greatest amount of inventory and when goods are not being sold or received.

   At the end of the companys fiscal year

   When the company has its greatest amount of inventory

1. Practice Question 4

Which of the...