Which of the Following Items Should Be Included in a Company's

question 134

Multiple Choice

Which of the following items should be included in a company's inventory at the balance sheet date?

• A) Goods in transit which were purchased F.o.b. destination.
• B) Goods received from another company for sale on consignment.
• C) Goods sold to a customer which are being held for the customer to call for at his or her convenience.
• D) None of these answer choices are correct.

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Definitions:

Corporate Tax Rate

The percentage of a corporation's profit that is paid to the government as tax.

Debt Ratio

An indicator measuring a corporation's use of borrowing, obtained by dividing the sum of all liabilities by the sum of all assets.

Debt Financing

The means of raising capital through the sale of bonds, bills, or notes to individuals or institutions, in return for lending money to the borrowing entity.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding taxes and interest.