Stock take discrepancies between a count sheet and recorded quantities in the ledger may arise due to which of the following: I. Stock in transit purchased under FOB destination terms
II. Consignment stock included in the physical count by the consignee
III. Sales returns not being processed into the ledger
IV. Theft of stock during the year
A) I, II and III
B) I, III and IV
C) II, III and IV
D) I, II and IV

Question

Stock take discrepancies between a count sheet and recorded quantities in the ledger may arise due to which of the following: I. Stock in transit purchased under FOB destination terms
II. Consignment stock included in the physical count by the consignee 
III. Sales returns not being processed into the ledger 
IV. Theft of stock during the year
A) I, II and III
B) I, III and IV
C) II, III and IV
D) I, II and IV

Quizplus · Accepted Answer

II, III, and IV can all lead to discrepancies between the physical count and the ledger records. Stock in transit under FOB destination terms is not yet owned by the buyer and thus should not cause a discrepancy.

Stock Take Discrepancies Between a Count Sheet and Recorded Quantities