Freight Expenses -

question 4

Multiple Choice

Freight expenses -

• A)cannot be allocated when they apply to purchases of assets if the asset accounts do not allow allocations
• B)are allocated in the same proportion as the other accounts used in the purchase
• C)are allocated separately from the other accounts used in the purchase
• D)can never be allocated

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Definitions:

Net Sales

The total revenue from sales after subtracting returns, allowances for damaged or missing goods, and discounts.

Return On Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, indicating the profitability of a company from the common shareholders' perspective.

Net Income

The remaining earnings of a corporation after deducting all costs, taxes, and expenses from its gross revenue.

Common Stock

A type of equity security that represents ownership in a corporation, entitling shareholders to vote on corporate matters and possibly receive dividends.