Warehouse Inventory Reconciliation and Discrepancy Resolution
.docx
School
University Of Dallas**We aren't endorsed by this school
Course
ACC 211
Subject
Accounting
Date
Dec 26, 2024
Pages
3
Uploaded by CountCrown18695
Warehouse Inventory Reconciliation and Discrepancy Resolution1.What is the primary purpose of inventory reconciliation in warehouse accounting?oa) To ensure that inventory records match physical stockob) To calculate the depreciation of warehouse equipmentoc) To track employee working hoursod) To determine the cost of salesAnswer: a) To ensure that inventory records match physical stock2.What is the first step in reconciling inventory discrepancies?oa) Adjusting the accounting records immediatelyob) Reviewing the inventory transaction records for errorsoc) Writing off the discrepancy as a lossod) Notifying senior management of the discrepancyAnswer: b) Reviewing the inventory transaction records for errors3.If an inventory discrepancy is found during reconciliation, what action should a warehouse accountant take?oa) Write off the discrepancy as an expenseob) Investigate the cause of the discrepancy before making adjustmentsoc) Increase the inventory levels to match the recordsod) Ignore the discrepancy if it’s less than 5%Answer: b) Investigate the cause of the discrepancy before making adjustments4.What is the likely consequence of failing to reconcile inventory discrepancies in a timely manner?oa) Overstated inventory on the balance sheetob) Accurate financial reportingoc) Reduced operating expensesod) Improved profit marginsAnswer: a) Overstated inventory on the balance sheet5.Which of the following could cause a discrepancy in inventory reconciliation?oa) Using the FIFO inventory methodob) Errors in data entry during stock receipt or shippingoc) Proper storage and handling of all inventory itemsod) Regularly scheduled stock rotationsAnswer: b) Errors in data entry during stock receipt or shipping6.How should a warehouse accountant treat inventory shrinkage in the reconciliation process?oa) Ignore it if it’s under 1% of the total stockob) Adjust the inventory records and expense the loss
oc) Write off the shrinkage as an asset lossod) Reclassify it as part of the cost of goods soldAnswer: b) Adjust the inventory records and expense the loss7.What document is typically reviewed to resolve discrepancies during inventory reconciliation?oa) Purchase ordersob) Delivery notes and shipping confirmationsoc) Receipts and sales invoicesod) All of the aboveAnswer: d) All of the above8.Which inventory control system allows for more frequent reconciliations and reduces discrepancies?oa) Perpetual inventory systemob) Periodic inventory systemoc) FIFO inventory methodod) Just-in-time inventory systemAnswer: a) Perpetual inventory system9.What action should be taken if a warehouse accountant discovers that inventory shrinkage is dueto theft?oa) Immediately report the theft to management and the authoritiesob) Adjust the inventory records and continue operations as usualoc) Ignore the theft if it’s a small amountod) Record the shrinkage as an operational lossAnswer: a) Immediately report the theft to management and the authorities10.When reconciling inventory, what should a warehouse accountant do if discrepancies are found between physical inventory and recorded stock?oa) Make adjustments based on the last recorded countob) Investigate the cause of the discrepancy and correct the recordsoc) Ignore the discrepancy if it is under $100od) Automatically write off the discrepancyAnswer: b) Investigate the cause of the discrepancy and correct the records11.What role does the warehouse accountant play in preventing inventory discrepancies?oa) Ensuring proper record-keeping and accurate data entryob) Overseeing all warehouse operations and employee schedulesoc) Establishing the pricing for inventory itemsod) Managing customer complaints about stock levelsAnswer: a) Ensuring proper record-keeping and accurate data entry
12.What can a warehouse accountant do to reduce inventory discrepancies?oa) Implement regular audits and cycle countsob) Increase the number of employees involved in handling inventoryoc) Reduce inventory levels across all categoriesod) Automate all inventory processes without employee oversightAnswer: a) Implement regular audits and cycle counts13.Which of the following is a key reason for conducting regular physical inventory counts?oa) To determine the profitability of the warehouseob) To ensure that inventory records reflect actual stock levelsoc) To calculate labor costs more effectivelyod) To update customer sales dataAnswer: b) To ensure that inventory records reflect actual stock levels14.How should a warehouse accountant handle inventory discrepancies found during an audit?oa) Write off the discrepancy as a loss without further investigationob) Document the discrepancy and investigate potential causesoc) Recalculate inventory values without investigationod) Record the discrepancy as part of the cost of goods soldAnswer: b) Document the discrepancy and investigate potential causes15.What is the best practice when investigating inventory discrepancies?oa) Blame employees for mishandling inventoryob) Review inventory records, transactions, and physical counts thoroughlyoc) Ignore minor discrepancies as long as they are below $100od) Report the discrepancy to upper management without investigationAnswer: b) Review inventory records, transactions, and physical counts thoroughly