Which One of the Following Statements Is True

question 72

Multiple Choice

Which one of the following statements is true?

• A)Until goods are sold by the consignee, the consignor includes the goods in his/her inventory at cost less handling and shipping costs incurred in the delivery to the consignee.
• B)When goods are sold on an installment plan, the seller retains title and continues to include them on his/her balance sheet until full payment has been received.
• C)Title to goods may not pass before shipment occurs.
• D)In accounting for inventory, economic substance should take precedence over legal form.

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Definitions:

Excise Tax

A tax imposed on specific goods, such as tobacco and alcohol, usually aimed at reducing consumption of these goods or generating revenue.

Supply Curves

A graphical representation showing the relationship between the price of a good and the amount of it that producers are willing to supply.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of products like gasoline, alcohol, and tobacco.