Test your knowledge of double entry bookkeeping with our costs included in inventory quiz.
In order to correctly establish the cost of inventory to be shown on the balance sheet of a business it is first necessary to understand and identify which costs are required to bring the inventory to its present location and condition ready for sale.
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Identify whether each of the following costs are included or excluded from the cost of inventory.
For each question click on an answer to reveal whether its Right! or Wrong.
Try Another Double Entry Bookkeeping Quiz
This costs included in inventory quiz is one of many of our online quizzes which are used to test your knowledge of double entry bookkeeping, discover another at the links below.
- Quiz 67: Expanded Accounting Equation Quiz
- Quiz 48: Financial Statements Quiz
- Quiz 64: Normal Balance Side Quiz
- Quiz 57: Accruals and Prepayments Quiz
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.