Computers for You Is a Retailer Specializing in Selling Computers

question 200

Multiple Choice

Computers For You is a retailer specializing in selling computers and related equipment. During 2014, Computers For You sells $200,000 of merchandise to Sandcastles, Inc. Computers For You incurs $24,000 of freight costs associated with these sales. Which of the following is true regarding how this $24,000 is treated on the financial statements?

• A) Computers For You will report the $24,000 as part of inventory on the statement of financial position.
• B) Sandcastles, Inc. will report the $24,000 as part of inventory on the statement of financial position.
• C) Computers For You will report the $24,000 as part of operating expenses on the income statement.
• D) Sandcastles, Inc. will report the $24,000 as an accounts receivable on the statement of financial position.

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Definitions:

Family of Orientation

Refers to the family into which a person is born and raised, including parents and siblings, influencing an individual's early socialization and values.

Social Reproduction

The process by which societal norms and inequalities are passed down from one generation to the next, maintaining the social structure.

Marxist

Pertaining to the theories and practices derived from the works of Karl Marx, focusing on the struggle between classes and the economic factors influencing society.

Feminist-Marxist

A theoretical framework that combines feminist and Marxist perspectives, focusing on the oppression of women within capitalist societies.